How does Loan Against Shares work?
The Loan Against Shares is a term loan against equity shares you own. It helps you gain the financial flexibility that you need without disrupting your long-term investment strategy. In terms of your fiscal position, Loan Against Securities is a better option to explore instead of bringing your investments in other securities like property and gold in the ambit of loans – the shares you own can generate loans for your business.
How does Line of Credit(LOC) work?
LOC (Line of Credit) is an overdraft facility against your marketable securities. You can draw on this line of credit at any time, but you cannot exceed the maximum limit set by us. The advantage of LOC is that you pay interest only for the actual time period when your business finance is used.
Why do you need LAS or LOC?
If you are a business owner requiring immediate funds, LAS or LOC is the most appropriate financing solution for you. Businesses with expansion plans, or those requiring funds to procure additional manpower, machinery and tech expertise to scale operations should consider Loan Against Securities. Additionally, salaried individuals in need of immediate liquidity may also opt for this financing solution. Loan Against Securities may also be taken for personal reasons as well – consider it in lieu of loan for marriage or for your child's education loan. An advantage to note is that as long as you hold sufficient eligible securities to use as collateral, this type of credit line may be easier to obtain and it is more cost-effective than other alternatives.
Features of Loan Against Securities/Line of Credit
- You do not need to sell your stocks. You simply pledge them to Aditya Birla Finance for up to
- There is immediate liquidity pending scrutiny of shares.
- We offer a minimum loan amount of Rs 25 lakh.
- The bonuses and dividends on the pledged shares will continue to accrue to you during the loan period.
- You can renew the corporate loans at your discretion.
- You do not require a guarantor to avail of Loan Against Shares.
- These loans typically attract lower interest rates than other forms of credit.
- There are no set-up, non-use, or cancellation fees.
So what next?
- If you own physical shares, you must dematerialise them before you proceed with the LAS/LOC application.
- Ask us for our
list of approved shares at the time of making the loan application.
- Do you want complete product details? Download the
- If you want to apply for LAS/LOC, download the
Do you have questions?
Call +91 84259 66666
write to us at
to arrange a meeting today.