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The financial burden of owning a home can be overwhelming for many individuals. The cost of down payments and monthly mortgage payments can put a strain on one’s finances. However, there is a solution that can help alleviate this financial burden – loans against securities. 

Let’s understand this with the help of a story.

Meet Raj and Aisha, a newly married couple and small business owners who have been dreaming of owning their own home for years. 

They have been saving up for a down payment, but even with their savings, they still fall short of the required amount. While discussing their financial situation with their friend, they learn about loans against securities and how it could help them realize their dream of owning a home.

Raj and Aisha are intrigued and start doing their research. And, they learned the following about how Loan Against Securities can help to reduce their financial burdens and downpayments on mortgage loans.

  • A loan against securities is a secured loan where borrowers can pledge their financial securities like shares, mutual funds, and bonds as collateral to avail of funds. 
  • With LAS, they can easily pledge their existing securities and avail of funds to make a larger down payment, thereby reducing the overall loan amount and the associated interest payments.
  • They can also use the loan to pay off high-interest debt such as credit card debt or personal loans. This can reduce their monthly payments and improve their credit score, making getting approved for a mortgage easier.
  • In case, they plan to make significant home improvements, such as adding a new room or renovating the kitchen, a loan against securities can provide them with the funds. This can help improve the value of the property, making it easier to pay off the mortgage in the long run.

Pros and Cons of Loans Against Securities

While loans against securities seemed like an attractive option, Raj and Aisha wanted to understand the pros and cons before making any decisions. They learnt the following:


  • Lower interest rates: Loans against securities typically have lower interest rates compared to traditional loans, making it an attractive option for borrowers. The loan amount is determined based on the value of the securities pledged, and the interest charged is usually lower than traditional loans, and with the help of Rurash Financials, they can start from as low as 9%.
  • No need to liquidate investments: Borrowers do not need to liquidate their investments to avail of funds. Instead, they can pledge their securities as collateral and continue to earn on their investments. They do not need to compromise on their dividends and interests earned in their respective investments.
  • Flexibility in repayment: The repayment terms for loans against securities are flexible, with the option of paying off the loan amount in installments or as a lump sum at the end of the loan term.
  • Perfect for small business owners: They also discovered that LAS is also a great alternative debt option for business owners like them who may require funds for short-term cash flow needs or to meet urgent expenses. This can help them avoid the need for traditional loans, which may have higher interest rates and longer repayment tenures.

However, they also found some potential drawbacks to consider (Cons)

  • The risk is the possibility of a decline in the value of the pledged securities, which could lead to a margin call and the need to pledge additional securities or make a cash payment to maintain the required margin. 
  • Additionally, the loan amount is determined based on the value of the securities pledged, which may be limited for individuals with a small investment portfolio.

Despite that, Raj and Aisha realized that Loan against securities can be perfect for their situation as it is an ideal overdraft facility. 

With LAS, they can avail of a credit line against their securities, and use it as and when required, without the need for a separate application or approval for each withdrawal. Also, the interest is only charged on the amount withdrawn, making it a cost-effective option. This provides greater flexibility and convenience, as they can access funds quickly and easily, without having to liquidate their investments to realize their dreams. 

So, the moral of the story is, Raj and Aisha’s decision to opt for loans against securities would be a smart financial move. Besides, LAS offers a quick and hassle-free financing option with simple documentation and instant processing. 

With Rurash Financials, you can pledge over 800 approved securities and receive funding ranging from Rs. 10 lakh to 100 crores. There are also no foreclosure or part-payment fees, giving you complete control over your finances.

To know more about loans against securities and their related terms, contact us today or write to

Check out the Eligibility and Documents Required for Loan against Securities

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