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Loan Against Securities

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    Loan Against Securities (LAS)

    LAS, also known as Loan Against Securities. As per the Indian banking system, it is always important to have the security to raise the funds. Higher the security the better the possibility, off course business cash flow is one of the important parts of the consideration. When it comes to security, the financial institutions will consider the security which includes – Fixed asset, Gold, Bond, Shares, Mutual Funds, Fixed Deposit etc. Under LAS, the Financial Institutions consider the Bonds, Shares, and Mutual Funds as a security to arrange the debt funding security.

    loan against securities

    Why Loan Against Securities?

    1. Helps to Maintain Liquidity

    Generally Shares, Bonds and Mutual funds remain idle once it is purchased. However, if it is pledged, it will help to create the additional liquidity without disposing the existing holding.

    2. Most Liquid Security

    Stocks, Bonds and Mutual funds are among the most liquid assets. They are easy to dispose of. In case if the borrower defaults with the payment or obligation, the financial institution does not need to go through the tedious process. So this gives extra comfort to the financial institutions.

    3. Value Based Exposure

    There is different weightage given to the Stocks (different stocks, different exposure), Mutual Funds and Bonds. Sometimes the exposure can be given up to 90% to 95% of the bond market price, depending upon the quality of the paper.

    4. Different Facilities

    The given securities can be used for different kinds of debt facilities. It will include – OD, CC, Term Loan or any other trade finance facility.

    Loan Against Securities at Terkar Capital

    We at Terkar Capital understand the Mutual Funds, Shares, and Bonds as security available and we also understand the company and its requirements for the funds. So, With Terkar Capital’s Loan against securities instruments, you can raise quick funds from your investments and Get instant approval.​

    Learn more about securities lending here.


    This is one of the liquid securities. And does not require much due diligence. So the turnaround time to raise the funds will be of 5-6 working days.

    There is no specific consideration for the interest rate. It will be regular and based on the repo rate.

    The loan to value ratio depends on the rating of the security. It starts with 40% and may go up to Rs. 90% of the market value.