Loans against Securities is a type of an overdraft facility wherein you need to pledge mutual fund units as collateral and get the loan ranging from Rs.2 lacs to 10 crores. To meet your immediate fund requirement LAS is the best option rather than selling your existing investment.

You don’t have to provide any additional security or collateral except the securities you are pledging!

Loan against Securities are typically offered as an overdraft facility wherein you draw money from the account anytime you want (up to the sanctioned amount), and you need to pay interest only on the loan amount you draw and for the period you use it.

For example, your LAS has been sanctioned for Rs. 5 lacs. Now let’s say, you draw Rs 1 lacs and after 20 days you deposited the amount back into your loan account. In this case, interest will be charged on Rs.1 lac for 20 days.