Loan Against Mutual Funds & Shares
Need funds without redeeming your investments? Explore loan against securities options where eligible mutual funds, shares and bonds may be pledged as collateral.
Check Your Eligible Loan Amount
Share the type and approximate value of your securities and we'll help you understand the applicable process.
Understanding Loan Against Securities
The loan amount is generally a percentage of the market value of the pledged securities, and can vary based on the type of instrument and lender policy.
Mutual Funds
Eligible equity and debt mutual fund units may be pledged, subject to the lender's approved fund list and applicable haircut.
Shares & Bonds
Listed shares and certain bonds may also be considered as collateral, depending on the lender's policy and market conditions.
Overdraft Facility
Many lenders offer this as an overdraft-style facility, where interest is charged only on the amount actually withdrawn, not the full sanctioned limit.
Faster Processing
Since the facility is backed by liquid securities, processing can often be quicker compared to a fully unsecured loan, subject to verification.
Loan Against Securities Questions
Do I lose ownership of my mutual funds or shares?
No, ownership generally remains with you. The securities are typically marked as a lien/pledge in favour of the lender until the loan is repaid.
What happens if the value of my securities falls sharply?
Lenders usually monitor the pledged portfolio value. If it falls significantly, you may be asked to pledge additional securities or repay part of the outstanding amount, as per the lender's policy.
Can I continue to earn dividends/returns on pledged securities?
In many cases, yes — but this depends on the lender's specific terms and the type of security pledged. Please confirm this with the lender before proceeding.
Is loan against securities available for all mutual funds?
No, lenders usually maintain an approved list of eligible mutual fund schemes and securities. Not every fund or stock may qualify.
Have Mutual Funds or Shares You'd Rather Not Sell?
Talk to us about using them as collateral for funding your requirement without disturbing your investment plan.