Loan Against Securities (LAS): Get Cash Without Breaking Your Investments
One of the biggest mistakes an investor can make is selling their best mutual funds or shares just to meet a short-term cash need. Selling your assets pulls your money out of the market, forces you to pay capital gains tax (like the 12.5% LTCG tax), and stops your long-term wealth from growing.
Smart investors protect their money by using a simpler solution: a Loan Against Securities (LAS), also known as a Loan Against Mutual Funds (LAMF). This gives you an instant digital cash line backed by your existing portfolio, without having to sell anything.
What is a Loan Against Securities (LAS)?
A Loan Against Securities lets you use your shares, mutual funds, or bonds as collateral to get a cash limit from an RBI-regulated bank or NBFC. It works just like a digital overdraft connected to your bank account. You still fully own your investments, meaning you keep earning dividends, and your money keeps growing in the market.
Clearing Common Doubts About LAS
Even though it is highly efficient, many people still have questions about how borrowing against a portfolio works. Let’s clear them up:
1. Will my Systematic Investment Plans (SIPs) stop?
Absolutely not. Taking a loan does not lock or pause your monthly SIPs. Your SIPs will continue to buy new mutual fund units every month as usual.
2. How much money can I borrow?
The amount you can borrow depends on the rules set by financial regulators to keep things safe:
- Equity Mutual Funds & Shares: You can generally borrow up to 50% of their current value.
- Debt Mutual Funds & Bonds: Because they are less risky, you can borrow up to 80% to 85% of their value.
3. How is the interest charged?
Unlike a regular personal loan where you pay interest on the full amount from day one, an LAS works purely as an **Overdraft Line**. You only pay interest on the exact amount of money you transfer to your bank, and only for the days you use it. For example, if you have a limit of ₹20 Lakhs but only use ₹5 Lakhs for 12 days, you only pay interest on ₹5 Lakhs for those 12 days.
| Feature | Regular Personal/Business Loans | V-Mint LAS / LAMF |
|---|---|---|
| Interest Charges | Charged on the full loan amount immediately | Charged only on the money you actually use |
| Effect on Wealth | None | Your investments keep growing normally |
| Early Repayment Fees | Heavy penalty fees often applied | Zero penalties. Repay whenever you want |
| Application Process | Lots of paperwork and physical checks | 100% digital process with quick approval |
Interactive LAS Savings Calculator
Use our simple calculator below to see exactly how much money you save by opening a cash limit instead of selling your mutual funds.
Extra wealth kept in your pocket.
How to Use This Calculator
Enter Cash Required: Use the slider to select the money you need right now.
Set Expected Growth: Put in the yearly return you expect from your mutual funds.
Compare Costs: Adjust the loan interest rate to match what banks are offering.
See Your Savings: The calculator shows exactly how much money you save by borrowing against your assets instead of selling them and paying taxes.
How to Apply Safely and Quickly
Applying for a loan against your shares through traditional banks can be slow and involve lots of paperwork. At V-Mint Capital, we make this completely hassle-free. By partnering with India’s top RBI-registered lenders, we provide the fastest digital loan process available.
Whether your mutual funds are spread across different companies or in one place, our system securely fetches your details instantly. The loan limit is set up smoothly using a secure OTP, giving you quick cash at great rates without touching your core investments.
Get Your Instant Cash Line
Get the money you need today without hurting your future wealth. Check your exact loan eligibility in minutes.
Apply For LAS Today