Loan Against Securities

A loan against securities is a secured credit facility that allows you to borrow funds by pledging your market-linked investments as collateral, without selling them. It is designed to help you meet short-term or medium-term financial needs while allowing your investments to remain intact and continue to benefit from market growth. Since the process is fully digital and requires minimal documentation, it offers quick access to funds at comparatively lower interest rates than unsecured loans.

The funds availed through a loan against securities can be used for a wide range of personal or business purposes, such as managing cash flow, consolidating existing debt, funding business expenses, supporting education needs, handling medical emergencies, or meeting other urgent financial obligations. There are no restrictions on end use, giving borrowers complete flexibility to use the funds as required.

A loan against securities is a secured credit facility that allows investors to unlock funds by pledging their investments as collateral, without selling them. Since the loan is backed by market-linked assets, it typically comes with lower interest rates compared to unsecured borrowing options and offers quicker approvals through a fully digital process.

This facility requires minimal documentation and does not involve lengthy verification procedures, making it suitable for borrowers who need quick access to funds. Repayment is also flexible, allowing borrowers to repay the loan as per their cash flow and reduce interest costs by closing the loan early. With Abhiloans, there are no prepayment or foreclosure charges, which gives borrowers complete control over their repayment schedule.

Overall, a loan against securities combines speed, flexibility, and cost efficiency, making it a practical solution for meeting short-term liquidity needs while keeping long-term investments intact.

Loans against securities can be availed by pledging different categories of eligible investments as collateral. Depending on the investments you hold, you can opt for a loan backed by mutual fund units, equity shares, bonds, or eligible insurance policies.

Each option allows you to unlock funds without selling your investments, while the approved loan amount is calculated based on the value and eligibility of the pledged securities.

To avail any of these options, the respective investments need to be pledged through a secure digital process, after which funds can be accessed quickly while you continue to remain invested.

A loan against securities is a secured facility where you can borrow funds by pledging eligible investments as collateral. The loan amount you can avail depends on the value and type of securities pledged, as well as the applicable loan-to-value (LTV) limits.

The minimum and maximum loan limits may vary across lenders. Generally, the maximum loan amount is calculated as a percentage of the market value or NAV of the pledged securities, with Abhiloans, you can avail a minimum loan amount starting from ₹10,000, and the maximum loan amount can go up to ₹10 crore, subject to eligibility and collateral value.

Pledged securities are valued based on real-time market prices or the latest available closing NAV, depending on the type of security. Since prices can change daily, the value of the collateral may fluctuate and affect the loan-to-value (LTV) ratio.

A margin shortfall occurs when the collateral value falls below the required level for the approved loan amount. In such cases, the borrower may need to add more collateral or repay part of the outstanding loan to restore the margin.

Understanding these valuation changes helps borrowers manage their loan better and avoid penalties or forced liquidation. Customers are informed about margin requirements and risks at the time of loan initiation to ensure timely action if market conditions change.