Sahare Wealth · Loan against securities
Need money? Keep your investments
Pledge your shares or mutual funds to raise money, without selling them. Your investments stay yours and keep growing, but they carry a real risk if prices fall. Know both sides first.
- No need to sell
- Risks explained upfront
- Help from Nagpur
Choose your route
Three ways to use your holdings
They look similar but work very differently. Read each before choosing.
Loan
Loan Against Shares (LAS)
Borrow against listed shares held in your demat account. Details are below on this page.
Loan
Loan Against Mutual Funds (LAMF)
Borrow against your mutual fund units while they stay invested and keep earning.
Not a loan
Stock Lending & Borrowing (SLBM)
You lend your shares through the stock exchange and earn a fee. A different product, used for short selling.
Loan Against Shares
How it works
You keep ownership. The lender holds a claim on your securities until the loan is repaid.
Choose what to pledge
Listed shares in your demat account, or mutual fund units. Lenders accept only approved securities.
The lender sets your limit
The limit is a percentage of the value of your holdings. It differs by lender and by what you pledge.
Lien is marked
You approve the pledge or lien through your depository or the fund's registrar, usually with an OTP. Marked securities cannot be sold.
Draw and repay
Use the money, pay the interest, and repay. The lien is removed after repayment.
Compare
LAS, LAMF and SLBM side by side
| Feature | LAS | LAMF | SLBM |
|---|---|---|---|
| What it is | A loan against your shares | A loan against your mutual fund units | Lending your shares for a fee, through the exchange |
| You receive | Money | Money | A lending fee |
| Your holdings | Stay in your name, pledged | Stay invested, lien marked | Transferred to the borrower for the period |
| Can you sell meanwhile? | Not without releasing the pledge | Not without releasing the lien | Not the lent shares |
| Main risk | Falling prices, margin call, forced sale | Falling NAV, margin call, forced sale | Price risk continues, plus operational and corporate action risks |
Before you borrow
Risks to understand
Falling prices can force a sale
If the value of your pledged holdings falls, the lender asks you to repay part of the loan or add more securities. If you don't act in the time given, the lender can sell your securities to recover its money, even at a loss to you.
Markets are volatile
A sharp fall in a few days can trigger a margin call. Keep a buffer; don't borrow your full limit.
Interest adds up
You pay interest on what you use. Check the rate, fees and how interest is charged.
Use limits on end use
Lenders may restrict using the money to buy securities. Check the terms.
Pledged means locked
You can't sell pledged holdings until you release them, so you may miss a selling chance.
Only registered lenders
Borrow only from banks and NBFCs registered with RBI. Check on RBI Sachet (opens in a new tab).
Read the agreement
Understand margin call timelines, charges and what happens on default before you sign.
Questions
Frequently asked questions
Do I lose my shares or funds if I take this loan?
No. They stay in your name, but they are pledged. You can't sell them until the loan is repaid or the pledge is released. If you default, the lender can sell them.
Do I still get dividends and returns?
Generally yes, as you remain the owner. Check the lender's terms for how corporate actions are handled.
What is a margin call?
A request from the lender to repay part of the loan or add more securities when the value of your pledged holdings falls.
Which securities are accepted?
Each lender has its own approved list. In general, listed shares in demat form and open-ended mutual fund units qualify. Unlisted shares and penny stocks usually don't.
Is SLBM the same as a loan against shares?
No. In SLBM you lend shares through the exchange and earn a fee; you don't receive a loan. See our SLBM page for the details.
What interest rate will I get?
It depends on the lender and your profile. Ask us for current options.