Loan Against Shares
Need funds for a business requirement, a family event or a short-term gap? Pledge the shares in your demat account and borrow against them - your holdings stay in your name.
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A loan against shares (LAS) lets you pledge approved shares held in your demat account with a bank or NBFC and borrow a portion of their market value, usually as an overdraft where interest is charged only on the amount you use. You keep ownership - and dividends, bonuses and rights - while the shares are pledged. The lender decides which shares are eligible, how much it will lend against each, and the interest rate.
Liquidity from your equity portfolio
Meet a short-term need without breaking a long-term holding.
- Pledge approved shares through your depository (NSDL / CDSL)
- Overdraft facility - pay interest only on what you draw
- Shares stay in your name; corporate benefits continue
Why it's worth it
From your first conversation to ongoing service, everything is built around your needs.
Stay invested
Your shares remain in your demat account, under pledge, and keep participating in the market.
No sale, no capital-gains trigger
Borrowing instead of selling avoids the tax a sale might create.
Flexible repayment
Repay and re-draw within your sanctioned limit, subject to lender terms.
Often cheaper than unsecured credit
Secured borrowing is usually priced below personal loans and credit cards.
Simple, transparent, personal
We listen first and understand completely before suggesting anything.
- 1Understand your goals, family situation, time horizon and comfort with risk
- 2Shortlist relevant options as incidental advice and explain them in plain language - costs, risks and all
- 3Take care of KYC, forms and documentation so getting started is hassle-free
- 4Review regularly and stay a phone call away whenever life changes
Frequently asked questions
Quick answers about loan against shares. Still have a question? We're happy to help.
How much can I borrow against my shares?
Lenders lend a percentage of the market value of shares on their approved list - typically up to about half of the value, within RBI's loan-to-value norms. The exact limit depends on the lender and the shares pledged.
What happens if the share price falls?
If the value of the pledged shares drops below the required margin, the lender will ask you to add shares or cash, or repay part of the loan. If the shortfall is not met, the lender may sell the pledged shares.
Do I still get dividends?
Yes. Pledged shares stay in your demat account, so dividends, bonuses and rights entitlements continue to come to you.
Who provides the loan?
A bank or RBI-registered NBFC sanctions the loan and sets the interest rate, charges and terms. Fortunate Investments helps you understand the process and complete the paperwork - we do not lend.
Can I also borrow against mutual funds?
Yes - see our Loan Against Mutual Funds page. Many lenders allow a combined limit against both shares and mutual fund units.
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All our services
Loans against shares are sanctioned solely at the discretion of the lending bank or NBFC, subject to its credit assessment, approved-securities list, loan-to-value limits under RBI norms, interest and charges. Pledged shares remain subject to market risks; a fall in their value may require additional margin, part-repayment or sale of the pledged shares by the lender. Fortunate Investments only facilitates the application and does not lend.
Need help choosing the right option?
Talk to us - we'll understand your needs and explain your options in plain language.