What is a Loan against Shares (LAS)?
Before delving into the lender selection, let’s first understand what an LAS is. A Loan Against Shares (LAS) is a type of secured loan in which you offer your shares, mutual funds, or other securities as collateral. The lender then grants a loan amount that is a percentage of the market value of these pledged securities. Loan Against Shares can be a smart financial strategy in various situations. Let’s look at some of its advantages below. Advantages of a Loan Against Shares: Retain Ownership and Benefit from Growth: The primary advantage of LAS is that you retain ownership of your shares, ETFs, mutual funds, or other securities. This allows you to benefit from their potential long-term appreciation while still accessing much-needed funds. Lower Interest Rates: LAS is a secured loan, meaning your shares act as collateral. This reduces the risk for the lender, translating into lower interest rates compared to unsecured loans like personal loans or credit card debt. Faster Disbursal: Th