Loan Against Securities

Loan Against Securities (LAS) is a type of loan that is granted against bonds, insurance policies, Mutual Fund units and shares as collateral. Such loans are provided as an overdraft facility. This means you can withdraw any amount you need within the sanctioned loan limit, which is typically based on the value of the pledged asset. The interest on a Loan Against Securities is charged on the amount withdrawn by you for that period. One of the key benefits of LAS is that you continue receiving dividends and bonuses associated with your investments even when they are pledged to the Bank. You can avail a loan depending upon size of your portfolio. How a Loan Against Securities (LAS) differs from other loans Bonds, stocks (shares) and Mutual Funds are examples of assets that can serve as collateral for a Loan Against Securities (LAS). Due to the backing of this collateral, LAS provides lower interest rates than unsecured loans, which are based on your credit rating. LAS is a practical choice for people who own shares, Mutual Funds, bonds etc. because it is also disbursed faster. How does Loan Against Securities (LAS) work? You pledge your assets- like stocks, bonds or Mutual Funds- as security for the Loan. The market value of the securities determines the Loan amount. After evaluating and approving the securities, ICICI Bank will provide the Loan, which you then have to repay in accordance with the conditions that were agreed upon. Benefits of Loan Against Securities (LAS) Lower interest rates and faster loan approval are among the advantages of Loan Against Securities (LAS). This Loan gives you liquidity without requiring you to sell your investments, allowing you to keep control of your assets. It's a low-risk borrowing choice.