What it is
A credit line backed by what you already own
Selling investments to meet a short-term need breaks your compounding and may trigger capital gains tax. A loan against securities lets you raise money without selling.
You pledge eligible holdings in favour of a lender. The lender sets a limit, a percentage of the current value of what you pledge, and you draw from it as you need. When you repay, the pledge is released and the units or shares are fully free again.
It suits short, known needs: a business payment cycle, a fee due before a maturity, a property token amount, or bridging a gap until a bonus or sale comes through. It is not meant for buying more shares on borrowed money.
Worked example
- Equity mutual funds held
- ₹20,00,000
- Indicative limit at 45%*
- ₹9,00,000
- Amount actually used
- ₹3,00,000
- Interest charged on
- ₹3,00,000 only
- Your funds
- Stay invested, in your name
*Illustration only. The actual limit, interest rate and charges are set by the lender and depend on the securities, their value on the day and the lender's own policy.
Why people use it
Liquidity without breaking your plan
The goal is simple: meet the need, repay, and let the long-term money carry on as if nothing happened.
Investments keep growing
Your SIP funds and shares stay invested. Dividends and any growth remain yours while they are pledged.
Quick liquidity
With online pledging through the depository or registrar, many lenders set up the limit within a few working days.
Interest only on what you use
Draw ₹2 lakh from a ₹10 lakh limit and you usually pay interest on ₹2 lakh, for the days you use it.
Overdraft-style limit
Withdraw and repay in parts, as often as you need, within the limit and the tenure the lender allows.
Eligible securities
What you can pledge, and indicative limits
Each lender keeps its own approved list of schemes and shares. The ranges below are indicative and lender-dependent, not an offer.
| Security | Typical requirement | Indicative loan-to-value (LTV) |
|---|---|---|
| Equity and hybrid mutual funds | Units in demat or held with the registrar, scheme on the lender's approved list | about 40% to 50% |
| Debt and liquid mutual funds | Scheme on the lender's approved list | about 70% to 80% |
| Listed shares | In demat, from the lender's approved list of stocks | up to about 50% |
| Bonds and debentures | Listed, rated, in demat, accepted by the lender | about 50% to 80% |
Indicative ranges only. Actual LTV, interest rate, processing fee and tenure are decided by the lending partner and can change with market value and regulation. If the value of pledged securities falls, the lender may ask you to add securities, repay part of the amount, or may sell pledged securities as per its terms.
How it works
Four steps from holdings to cash
We help you check eligibility, compare partner lenders and complete the paperwork. The lender makes the credit decision.
- Share your holdingsSend us your mutual fund statement or demat holdings. We check which ones the partner lenders accept.
- See your indicative limitWe show the likely limit and the lender's rate and charges, so you can decide before you apply.
- Pledge onlineComplete the lender's KYC and mark a lien on the chosen units or shares through an OTP-based pledge.
- Use, repay, releaseDraw what you need into your bank account. Repay any time as per the lender's terms and the pledge is released.
Before you borrow
Points we go through with you
- Borrow for a short, defined need with a clear repayment source.
- Keep a buffer below the limit so a market fall does not lead to a margin call.
- Prefer pledging debt funds where possible, since their value moves less.
- Compare the interest cost with the tax and growth you would lose by selling.
- Read the lender's sanction letter: rate, fees, tenure, renewal and what happens on a shortfall.
Questions
What people ask about loan against securities
Short answers. For your own holdings, send us a message.
Do I lose ownership of my mutual funds or shares?
No. They stay in your name. A lien is marked in favour of the lender, which only stops you from selling them until the amount is repaid.
How much can I get?
A percentage of the current value of approved securities. As a rough guide, debt funds get a higher percentage than equity funds and shares. The exact limit is set by the lender.
What happens if markets fall?
If the value of your pledged holdings drops below the lender's required margin, you will be asked to add more securities or repay part of the amount. If that is not done in time, the lender may sell part of the pledged securities as per its terms.
Is there a fixed EMI?
Most facilities work like an overdraft: you pay interest on the amount used, usually monthly, and repay the principal when you can within the tenure. Some lenders also offer term options.
Who gives the loan?
Our partner banks and NBFCs. Vision Wealth helps you check eligibility and apply; the lender approves, disburses and services the facility under its own terms.
Find out how much your investments can unlock.
Send us your holdings on WhatsApp and we will reply with an indicative limit from our partner lenders.
Disclaimer: Loans against securities are offered by our partner lenders, banks and NBFCs, and are subject to their eligibility criteria, credit assessment, terms and conditions. Vision Wealth acts only as a facilitator and does not lend. Interest rates, LTV and charges shown are indicative and may change. Pledged securities can be sold by the lender in case of a margin shortfall. Mutual fund investments are subject to market risks, read all scheme related documents carefully.