An instant loan against securities allows you to unlock the value of your existing investments without selling them. You pledge your financial assets—such as shares, mutual funds, bonds, insurance policies, or government securities—as collateral, and in return, you receive quick funding with minimal hassle.

Let’s dive into the top benefits of taking an instant loan against securities and why it’s becoming a popular financial tool in India.

1. Instant Access to Funds

One of the key advantages of a loan against securities is the speed of disbursal. Unlike traditional loans that may take days for approval, LAS offers instant or same-day disbursal upon successful verification. This makes it ideal for emergencies or urgent financial needs.

2. No Need to Sell Your Investments

Selling your investments during market lows can result in losses. With a loan against securities, you can raise funds without liquidating your assets. Your portfolio continues to earn returns—whether it’s dividends, interest, or capital gains—while you get the money you need.

3. Lower Interest Rates Compared to Personal Loans

Since loans against securities are secured loans, they typically come with lower interest rates than unsecured options like personal loans or credit cards. This makes them more affordable in the long run, especially for short-term financial needs.

4. Flexible Repayment Options

Most LAS options offer flexible repayment tenures, ranging from a few months to a few years. You can choose between regular EMIs or bullet payments, depending on your financial comfort. This makes it easier to manage your cash flow while repaying the loan.

5. Minimal Documentation & Hassle-Free Process

Applying for an instant loan against securities is extremely convenient. The documentation is minimal—often just KYC, income proof, and details of the securities being pledged. Many lenders, including digital platforms like My Mudra, offer completely online application and approval processes, saving time and effort.

6. High Loan Amount Based on Asset Value

You can borrow a substantial amount—up to 70–80% of the current market value of your pledged securities. Whether you need ₹1 la*** or ₹1 crore, the loan amount is directly tied to the quality and value of your investments, offering ample liquidity.

7. No Prepayment Charges

Many financial institutions do not levy prepayment or foreclosure charges on LAS. This means you can repay the loan early without any additional cost, giving you more financial freedom and saving on interest payments.

8. Maintains Your Credit Score

Since LAS is a secured loan, lenders are more lenient with eligibility criteria. Timely repayment helps improve or maintain your credit score, making it easier for you to access future credit when needed.

Final Thoughts

An instant loan against securities is a smart, low-risk borrowing option for investors and individuals with financial assets. It provides fast access to funds, protects your investment portfolio, and offers better terms than most personal loans. Whether you’re facing a short-term cash crunch or planning a major expense, LAS can help you meet your financial needs without compromising your long-term goals.