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Get a loan up to Rs 100 crore against your shares and securities – Apply Now

Have you ever needed money quickly to handle a business or personal emergency? You can borrow capital by pledging your financial investments as collateral for a loan against securities. Traditionally, loans have been secured by gold, property or vehicles, or insurance policies, but you can also borrow against your shares or mutual fund investments.

The benefits of taking a loan against your securities are that you can get instant liquidity against your shares, mutual funds debentures, or any other investment without actually selling them.

Is it possible to borrow against your securities?

Loans against securities are disbursed by both banks and NBFCs. A comparison of creditor options can assist you in your decision-making process.

AreaMajor BanksMajor NBFCs
Margin needed50% (for equity and Equity oriented mutual funds) Upon lenders will (debt and Debt based funds) 50% (for equity and Equity oriented mutual funds) Upon lenders will (debt and Debt based funds) 
Maximum loan amount20 lakhs for Demat shares20 lakhs for Demat shares
Loan processing Slow and time intensiveSlightly faster than banks

The safest, fastest, and most effective way to raise funds for your cause is to borrow from an aggregator such as Rursah Financials, as we can assist you in the process through a bespoke plan and consequently cutting down the time taken for loan disbursement by banks or NBFCs. These financial institutions have multiple wheels working to approve your loan and disburse the amount, which takes up much-needed time  Who is eligible to take out a security loan?

Loans against securities can be taken if you are:

  • An Individual:

If you are an Indian citizen over the age of 18 and hold securities in the Indian financial markets, you can apply for a loan against your securities.

  • Proprietorship or LLP: 

In the event that you own a company or are a member of a limited liability partnership, you may be eligible for a loan based on your share investments in the Indian market.

  • Private/Public Limited Company: 

Limited companies may be either private or public entities holding investments with securities under their names.

  • Private trust: 

A Private Trust governed under the Indian Trust Act, of 1882 which holds securities on the stock market and manages assigned property for religious or private purposes may also apply for a loan against these securities.

What purposes of taking a loan against securities?

Individuals, proprietorships/LLPs, private limited companies, and trusts can obtain loans against their securities for the following purposes:

Working capital requirement for business:

In order to facilitate the day-to-day working capital needs of a business, a loan against securities may be taken in order to achieve profit and growth in the future.

Business expansion: 

Your securities can be used as collateral for a loan to expand your business. It can be used to launch a new product or open new branches or offices.

Investment in capital market: 

You can take a loan on your current investments if you wish to increase your wealth and you are confident in your stock picks. You can use this money to make further investments in the capital market. Over time, you can build your wealth, and the loan can be repaid with the profits from future investments.

Personal use of any kind:

It is possible to take out a loan against securities for expenses such as a child’s marriage, education, home purchase, or a medical emergency.

Which products are offered and what are the terms of the loan?

A variety of products are available to you, including:

1. Fixed terms loan

Bonds, mutual funds, and shares can be used as collateral for a fixed-term loan. Rurash Financials offers the industry’s lowest interest rate of just 8.5% for a duration of 12 months, which can be extended upon mutual agreement. These loans typically have a duration of 6-12 months and interest rates ranging from 11% to 18%.

2. Overdraft facility: 

Alternatively, you can take advantage of our overdraft facility, which is available for a period of 12, with an interest rate starting at 8.5%.

Documentation required to attain this loan from Rurash Financials 

Documents aren’t complicated and the process is straightforward:

  • As per RBI guidelines, KYC (Know your customer) documents include address proof, identity proof, etc.
  • Statements of your bank for the last three months.
  • ITR/Networth certificate and latest audited financial statements including balance sheets, income statements, etc.
  • The security details/PMR reports that have been pledged
  • Any additional documents needed based on the situation (documents depending on different or unique situations).

Process of taking a loan against securities

The step-by-step process of attaining loan against securities from Rurash Financials is given below:

Step 1: Obtain common details such as eligibility and the process of obtaining a loan against your securities from our Relationship Manager.

Step 2: Provide details about your loan requirements and financial security.

Step 3: Within two hours, we will inform you of the estimated loan value.

Step 4: Initiate pledge of securities with Rurash Financials 

Step 5: Submit loan documents with  Rurash Financials 

Step 6: Approval of the loan (takes less than 24 hours).

Step7: Rurash Financials audits the documents and accepts the pledge

Step 8: Disbursement in your bank account via RTGS or NEFT immediately.

Step 9: Within 48 hours, you receive the loan account in your bank account.


If you need cash urgently, you can obtain a loan against securities without liquidating your investments. Dividends and profits are earned on the investments despite being pledged by the borrower. Considering that these loans have no EMIs and are flexible in repayment, it is not advisable to sell assets quickly or at a loss. 

The best option would be to raise funds through LAS instead. When you work with Rurash Finance, you will be able to get customized loan solutions based on your investment portfolio and needs. By taking out a loan and pledging your securities with Rurash, you will be able to take advantage of the most competitive interest rates Rurash Financials is one of India’s investment management firms, providing financial solutions to augment the client’s wealth and facilitates building a legacy.

Jaxson henry
Jaxson henry
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