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Loan Against Securities

Aditya Birla Finance Limited

Loan Against Shares

Leverage your securities for easy financial solutions

  • Register yourself
  • Provide basic documentation
  • Get loan disbursal in no time
Apply

About the Loan Against Shares

Every business requires funding from time to time. Whether to upgrade operations or purchase new premises, business loans help corporates take a higher leap towards progress. Whether your business is small or large, you may require an inflow of funds to take your operations to the next stage of success. However, you could consider putting your securities in the capital market to use. Instead of monetising your investments in securities, why not take a Loan Against Shares (LAS) also known as Loan Against Securities or a Line of Credit (LOC) and leverage your investments.

How does Loan Against Shares work ?

The Loan Against Shares is a term loan against equity shares you own. It helps you gain the financial flexibility that you need without disrupting your long-term investment strategy. In terms of your fiscal position, Loan Against Securities is a better option to explore instead of bringing your investments in other securities like property and gold in the ambit of loans – the shares you own can generate loans for your business.

How does Line of Credit (LOC) work?

LOC (Line of Credit) is an overdraft facility against your marketable securities. You can draw on this line of credit at any time, but you cannot exceed the maximum limit set by us. The advantage of LOC is that you pay interest only for the actual time period when your business finance is used.

Why do you need LAS or LOC?​

If you are a business owner requiring immediate funds, LAS or LOC is the most appropriate financing solution for you. Businesses with expansion plans, or those requiring funds to procure additional manpower, machinery and tech expertise to scale operations should consider Loan Against Securities. Additionally, salaried individuals in need of immediate liquidity may also opt for this financing solution. Loan Against Securities may also be taken for personal reasons as well – consider it in lieu of loan for marriage or for your child's education. An advantage to note is that as long as you hold sufficient eligible securities to use as collateral, this type of credit line may be easier to obtain and it is more cost-effective than other alternatives.

Features of L​oan Against Shares/Line of Credit

  • You do not need to sell your stocks. You simply pledge them to Aditya Birla Finance for up to 365 days.
  • There is immediate liquidity pending scrutiny of shares.
  • We offer a minimum loan amount of Rs 25 lakh
  • The bonuses and dividends on the pledged shares will continue to accrue to you during the loan period.
  • You can renew the corporate loans at your discretion.
  • You do not require a guarantor to avail of Loan Against Shares.
  • These loans typically attract lower interest rates than other forms of credit.
  • There are no set-up, non-use, or cancellation fees.

So what next ?

  • If you own physical shares, you must dematerialise them before you proceed with the LAS/LOC application.
  • Ask us for our list of approved shares at the time of making the loan application.
  • Do you want complete product details? Download the brochure : Click here
  • If you want to apply for LAS/LOC, download the application form : Click here

Do you have questions?

Call 1800 270 7000 or write us at care.finance@adityabirlacapital.com.

Loan Against Shares FAQ's

A loan against shares involves pledging shares, mutual funds, or life insurance policies as collateral to obtain a loan from the bank.

Under a loan against shares, various types of shares can be accepted as collateral, including:


  • Shares of publicly traded companies listed on recognised stock exchanges.
  • Equity shares are held in dematerialized (demat) form.
  • Preference shares issued by companies.
  • Convertible debentures or bonds.
  • Exchange-traded funds (ETFs) backed by shares.
  • Units of Real Estate Investment Trusts (REITs) or Infrastructure Investment Trusts (InvITs) if applicable.

The loan-to-value (LTV) ratio for shares offered as collateral is typically up to 50% of the share value. That implies that when you use shares as collateral for a loan, you can generally borrow an amount equivalent to up to half of the total value of those shares.

The tenure of a loan against shares ranges from 7 days to 36 months.

The accepted list of scrips for a loan against shares includes the following:


  • Equity shares of publicly traded companies listed on recognised stock exchanges.
  • Preference shares issued by companies.
  • Bonds or debentures issued by government or corporate entities
  • Exchange-traded funds (ETFs) backed by shares.
  • Mutual fund units.
  • Fixed deposits.
  • Life insurance policies with a surrender value
  • National Savings Certificates (NSCs) or other government savings schemes
  • Gold Exchange Traded Funds (ETFs) backed by physical gold.

For a loan against shares, the following collaterals are required:


Shares of publicly traded companies listed on recognised stock exchanges.


  • Equity shares held in dematerialised (demat) form
  • Preference shares issued by companies
  • Convertible debentures or bonds
  • Exchange-traded funds (ETFs) backed by shares
  • Units of Real Estate Investment Trusts (REITs) or Infrastructure Investment Trusts (InvITs) if applicable

What do we offer?

  • Loan Against Shares

A term loan against your equity shares that gets you financial flexibility without disrupting your long-term investment strategy. Loan Against Shares is better than loan against other securities like property or gold.

  • Loan Against Mutual Funds

We offer you the opportunity to receive immediate liquidity against your mutual fund units. Loan Against Mutual Funds is an overdraft facility for short-term monetary requirements with a shorter tenure.

  • Loan Against Life Insurance Policy

Leverage your existing life insurance policies to quickly generate cash reserves. Loan Against Life Insurance Policies helps you liquidate existing policy(ies) to get funds for professional or business purposes.

  • IPO Financing

ABFL offers you an opportunity to leverage your funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing bridges the gap between required funds and the resources at hand at a predefined margin.

  • Promoter Funding

ABFL’s Promoter Funding is one of the most reliable business funding options against your shares. It helps you gain a financial solution without disrupting your long-term investments. 

A term loan against your equity shares that gets you financial flexibility without disrupting your long-term investment strategy. Loan Against Shares is better than loan against other securities like property or gold.

We offer you the opportunity to receive immediate liquidity against your mutual fund units. Loan Against Mutual Funds is an overdraft facility for short-term monetary requirements with a shorter tenure.

Leverage your existing life insurance policies to quickly generate cash reserves. Loan Against Life Insurance Policies helps you liquidate existing policy(ies) to get funds for professional or business purposes.

ABFL offers you an opportunity to leverage your funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing bridges the gap between required funds and the resources at hand at a predefined margin.

ABFL’s Promoter Funding is one of the most reliable business funding options against your shares. It helps you gain a financial solution without disrupting your long-term investments.