A loan against securities (LAS) is a facility that allows you to borrow funds by pledging your financial assets, such as shares, mutual funds, bonds, or ETFs, as collateral.
When you need liquidity but do not want to sell your investments. By opting for an LAS, you can get access to funds without disrupting your long-term investment goals.
Interest rates for these loans are generally lower compared to unsecured loans, making them a cost- effective borrowing option. Moreover, since you are not selling your securities, you continue to benefit from potential capital gains and dividends. This enables you to manage cash flow gaps efficiently while keeping your investment strategy intact.
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