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In the world of finance, there are few things as valuable as flexibility. This is particularly true when it comes to loans and overdrafts, where rigid repayment schedules and high-interest rates can quickly become a burden. 

That is why a Loan against securities (LAS) is such an attractive option for those seeking an overdraft facility with a bit of leeway. Not only does it provide the perfect solution to your immediate financial needs, but it also allows you to swap securities at your convenience.

Let us see how!

So, what exactly is a loan against securities?

LAS is a facility where borrowers can pledge their securities as collateral to obtain a loan from a lender. This means that instead of giving up your securities, you can use them to secure a loan with a more flexible repayment schedule and a lower rate of interest. This allows you to access the funds you need to cover immediate expenses, without having to worry about high-interest rates or strict repayment schedules.


LAS is a popular financial product that is available from many financial institutions in India. Rurash Financials is one such institution that facilitates LAS from the most trusted lenders in the industry. They provide personalized loan assistance as per the requirement and suitability of their clients. As the interest rates offered by the lenders may vary based on the type of security pledged, loan amount, tenure, and other factors. Therefore, it is advisable to compare the rates and charges of different lenders before availing of LAS.

Why LAS?

One of the significant advantages of LAS is that it offers a lower rate of interest compared to unsecured loans. Unsecured loans, such as personal loans or credit card loans, can have a high-interest rate ranging from 12-15%, which can be a significant burden for borrowers. On the other hand, LAS offers a lower interest rate, typically ranging from 9-11%. This makes it an attractive option for individuals who need funds for short-term or long-term requirements.

Also, unlike traditional loans, which are typically tied to a specific purpose or asset, LAS allows you to use your securities as collateral, giving you the freedom to use the loan amount as you see fit. This means that you can use the funds to cover unexpected expenses, take advantage of new investment opportunities, or even pay off other high-interest loans.

One of the best things about LAS is its flexibility. The loan amount is not fixed but is based on the value of the securities held as collateral. It is available to securities, including equity shares, mutual funds, and bonds, among others. As a result, borrowers can access funds without liquidating their assets, and continue to receive the benefits of holding their securities.

The borrower can draw funds as per their requirements, up to the sanctioned limit. The interest is charged only on the amount that is utilized, rather than the entire sanctioned amount, which makes it a cost-effective option.

Additionally, LAS is a great option for those who are unable to get a personal loan or a credit card due to poor credit history, as the loan is secured against the collateral.

Another advantage of LAS is the ability to swap securities. If the value of the collateral securities depreciates, it is possible to replace them with other securities, without closing the existing loan. This flexibility ensures that the borrower can maximize their returns and make the most of their securities.

How to avail of LAS?

The borrower needs to have a demat account to avail of LAS, which is a digital account that holds the securities in electronic form. The borrower can pledge the securities from their demat account, which is then marked as a lien in favor of the lender. The borrower can continue to hold and trade the securities, subject to certain conditions specified by the lender. If the borrower wishes to swap the securities, they can do so by providing an equivalent amount of other eligible securities.

LAS is a perfect overdraft facility that offers flexibility, lower interest rates, and the ability to create wealth by taking advantage of the appreciation in the value of the securities. However, borrowers need to be mindful of the risks associated with the pledge of securities and ensure that they can meet their repayment obligations. But by choosing a trusted and reputable lender and being informed about the terms and conditions of the loan, borrowers can make the most of LAS as a financial product that can meet their short-term or long-term financial requirements.

At Rurash Financials, investors can leverage over 800+ securities listed on our approved list, which includes some of the most renowned securities and shares in the market. Customers can easily pledge their securities and receive quick approvals within 24 hours of opening an account. The LAS facility comes with the lowest interest rate in the industry, starting at just 9%, making it an affordable financing option for customers. 

Additionally, the LAS works like an overdraft account, and there are no EMIs. Only interest needs to be serviced every month.

To know further about LAS, connect with our relationship manager today or write to