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Loan Against Securities (LAS) gives people the option to go for instant emergency loans at a much lower cost compared to other types of loans without liquidating or disturbing their longer term wealth or investments.

Why Prefer LAS over Other Types of Loans?

Let’s take a detailed look at why you should Prefer Loan Against Securities (LAS) over other types of loans.

Instant Financing.

Going through any pressing liquidity crisis? Then Loan Against Securities is the best option for you. To meet unannounced urgent needs, LAS is the wisest choice because it is the easiest and most accessible quick financing mode. To arrange for a huge fund during any emergency can be daunting. 

Most people think about liquidating their investment at this time and converting their assets to liquid cash, but that is cumbersome and might result in distressed sales along with tax implications and obstruct longer-term wealth creation. Instead, you can avail a loan against these securities and get the funds that you are in need. The offer for approval is passed within 24 hours and the fund is made available for a short duration. So, that is a quick fix to an urgent liquidity crisis. 

Easy Repayment With almost nil foreclosure charges

The repayment terms for LAS are quite flexible and easy with minimal process and speedy closure of loan.

One of the primary benefits for LAS is almost nil foreclosure charges. The maximum tenure for repayment can be up to 36 months. However, there is a lot of room for flexibility and you can choose tenure at your convenience most of the time. 

Lower Installments and Interest Rates

Loan Against Securities has very low-interest rates, especially when you compare it with personal loans or credit cards. The usual range is between 8-15 percent. However, it may vary according to the lender’s prerequisites. LAS has an amazing option where you can pay only the interest amount as installments or EMI during the tenure. 

One can pay the principal capital even after tenure is over. The interest rates for LAS are lower compared to other loans. Also, the interest is calculated only on the disbursed amount and not on the approved loan.

No Cash Withdrawal Restrictions Upto Sanction Loan Limits.

LAS does not involve cash withdrawal restrictions. The borrower is free to withdraw their desired amount of cash up to the sanctioned loan limit. You can even withdraw the entire amount of the loan in cash. 

Portfolio Retainment

Usually, when an unexpected financial need arises, you either have to drain your savings, take a personal loan from the bank, or sell a portion of your assets. Instead of having to liquidate your assets, you get to keep them and get up to the approved loan amount at the same time. Since you don’t lose any assets such as stocks or mutual fund units from your portfolio, you’re still able to retain it in full.

Taxation Advantage

Liquidation of your investment can create a big dent on your investments and you could end up paying as high as 30% tax on your investments. Addressing the liquidity crisis through LAS is an ideal way. 

Continuity of Longer-term Investment

LAS is an absolutely amazing facility for long-term investors. They can easily overcome any type of fund shortfall in the short term without compromising on their future financial goals. For instance, stock market investors thrive on the buy-and-hold method. 

But if they have to suddenly liquidate some shares, it disrupt the entire investment portfolio. The inability to hold stocks for the long haul can hamper wealth creation and put a massive dent in your investment portfolio.

Who Can Avail Loan Against Securities?

LAS is offered to any Indian Resident or NRI who is above 18 years of age. Other than individual persons, Sole proprietorships, partnership firms, private limited companies are the entities that are entitled to Loan Against Securities. One can avail up to 85 percent of the security value as a loan.


A loan Against Security is one of the best forms of loans due to the innumerable material benefits that it offers. It is also one of the best ways to successfully overcome a financial emergency with wealth investment management company in India.

However, it’s better to opt for a  service provider that guides you through the entire process with ease. Rurash Financials has a dedicated team of experts to make this journey easier for you.