Overview
A loan against securities allows an investor to borrow against shares, bonds or mutual fund units by pledging them as security, instead of selling them.
The investor continues to hold the investments and can meet a short-term need for funds without disturbing a long-term portfolio.
Key features
- Borrowing against shares, bonds and mutual fund units
- Securities are pledged, not sold
- The borrower remains the owner of the investments
- Loan amount linked to the value of the securities pledged
Who it is suited for
- Investors with a short-term need for funds
- Promoters and business owners holding listed securities
- Individuals who do not wish to sell long-term investments