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What is Loan Against Securities (LAS)

LAS stands for Loan against Securities. LAS is the finance / loan available to clients against investments in capital market. It provides liquidity without liquidating your investments, at times when funds are required in an urgency. The securities like Equity/Debt mutual funds, shares, RBI Bonds etc., are pledged and against these securities loan is available at very competitive rates between 10.25 to 11.00 %.

What is the need of Loan Against Securities (LAS) ?

Many times the investor is in urgent need of money for short term requirements i.e. from 3 months to a year for bridge finance, child education, short term working capital needs, margin money to buy a house, etc. He would most likely redeem his investments and miss the opportunity to create wealth. The financial reforms initiated by current government are likely to yield exponential returns for investors over the next decade. So instead of redeeming units or stopping SIP, LAS is a boon for such investors.

The client can get the loan sanctioned against pledged securities and can operate it as an OD (Over Draft) account. The interest on loan is charged only on the fund utilized by the client. He can repay the loan partially / fully any time as per his convenience. There are no foreclosure charges.

LAS provides finance against your investments in capital market, It is a liquidity available without liquidating your investments in times when funds are required.

● Contingencies requirements
● Short term working capital need
● Bridge Finance
● Child Education
● Child Marriage
● Margin money to buy Home
● Personal Needs

How to Apply For LAS (Loan Against Securities) ? What is Procedure?

HRP Wealth Creators would help the investors by guiding them to take a loan against their investment and fill in the temporary gap and can earn additional trail income on the fund utilized by the investors.

We are happy to share with you that NJ is the first company in India to launch Online Loan Against Securities, a landmark step towards business digitalization.

HRP Wealth Creators can apply for a loan OR client can from E- Wealth account. Securities are pledged and E-signed and loan is sanctioned immediately. LAS is available to individual clients only whose securities are invested through NJ’s Demat A/c. Client has to upload a soft copy of his PAN card and a cancelled cheque (with his name printed) / Bank statement in JPEG format. Aadhar authentication is also needed for E- signing the documents and pledging. No physical documents are required for the sanction. Funds are dispensed within 24 hours of the receipt of IVR (Interim Valuation Report) and is transferred to the investor’s bank account.

How Interest is charged and What is Capital Repayment options?

Interest is calculated on the funds utilized by the client between 7th of the month to 7th of the next month and is debited from his account between 7th to 10th. Every month the interest is debited from the client’s bank account through NACH. As a part of the process, the HRP Wealth Creators has to take a printout of the NACH mandate form, fill it and get it duly signed by the client. Submit the form to the respective branch and it will be forwarded to the finance company.

There is a separate account for the principal repayment. Investor can do the repayment partially or fully through online platform.

How to release the pledged securities?

Client can get the pledged securities released simply by sending a mail to the finance company.

For the foreclosure of the loan, the client has to first repay the principal amount plus any interest due to the finance company. From his registered e-mail id, the client has to send a request for releasing the securities in a specified format. If all dues are paid, then the securities are released/unpledged within 24 to 48 hours of the request.

Client also has the option of partially unpledging his securities, if he is not utilizing the fund against those securities.

TYPES OF SECURITIES : Shares ● Open ended Equity Mutual Funds ● Debt Mutual Funds ● RBI Bonds


  • Minimum amount loan against securities is 200000
  • Minimum Disbursement amount should be Rs. 25000
  • Loan Agreement & security pledge documents will be ESIGN
  • Online loan repayment option available
  • No foreclosure charges
  • Partial repayment possible.
  • Online LAS application can only be done by individual clients.
  • For online LAS application the securities needs to be in Demat of NJ.
  • LAS can be initiated from Partner desk & E wealth account.
  • A separate ACH mandate duly singed by the client will have to be sent
  • directly Bajaj finserv with in 10 days.
  • In case the ACH mandate is not submitted to bajaj the interest payment
  • will have to be remitted to bajaj through online payment gateway on
  • Loan amount will be disbursed in the bank account given at the time of LAS application. 
  • Las will be available against – Mutual Funds, Shares, RBI bonds.
  • Close ended funds & ELSS funds which are still locked in cannot be pledged. 
  • Minor’s securities can not be pledged. 
  • In case a applicant for LAS is above 65 years of age it is mandatory to have a co – applicant who is a Major and less than 65 years of Age. 
  • LAS will not be offered on any PMS Investments (Equity & MF). 
  • In case Schemes Available in MARS is given for pledge then rebalancing of the portfolio will not be possible.

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