Loan Against Share: You can take loan against shares, know the complete process..

If there is ever an emergency, then a loan plays a very important role for us. As soon as we think of a loan, the first thing that comes to mind is a personal loan. However, investors who invest in the stock market do not know about loans against the stock. Yes, you can also take a loan against shares. This is also a kind of financial tool through which you can meet your expenses. We will tell you about this below.

What is a Loan Against Share (LAS)
In a loan against shares (LAS), the investor is given a loan in a secured manner. Many banks and non-banking financial companies (NBFCs) in the country provide this facility. In this, the loan amount is limited to 50 percent of the market value of the shares. However, even after taking this loan, the investor retains the ownership rights over their shares.

When the investor has taken a loan and is getting dividends at that time, then the investor gets its benefit. In this loan, only the lender marks the shares in the demat account as a pledge. Apart from this, the investor can get the loan as a one-time amount or overdraft. This option gives flexibility to the borrower.

These documents are necessary.
PAN Card and Aadhaar Card for KYC documents

Demat account statements

Bank statements, salary slips, IT returns for age certificate.

What is the eligibility criteria?
The benefit of a loan against shares will be available only to those investors who are shareholders of the companies listed by the lender. Many institutions also provide loan facilities on other securities like mutual funds or bonds.

These are the conditions.
In this, the interest rate is much lower than that of a personal loan. The tenure of this type of loan is one to three years. Flexible repayment is the option where the borrower can pay the interest along with the loan amount.

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