Loan Against Securities Lowest Interest Rate in 2026
Explore the lowest interest rates for loan against securities in 2026. Get a detailed loan against shares interest rates comparison and save on borrowing.
Anjali Singh
Assistant Manager
Do you know a loan that lets you pledge stocks, mutual funds, bonds, or insurance policies as collateral and borrow cash without selling your investments? It is a Loan Against Securities, which is a secured one. LAS typically carries much lower interest than an unsecured personal loan. In India, LAS rates generally start around 8-9% p.a. and can go up to ~15-18% according to the lender and collateral.
Most banks and NBFCs allow high Loan-to-Value (LTV) so borrowers can get large loans. The exact rate you pay depends on collateral quality and LTV (lower LTV and safer assets yield lower rates), your credit profile, and market conditions. Importantly, interest accrues only on the amount you use (as an overdraft), and many lenders offer flexible, interest-only repayment options.
The Loan Against Securities Interest Rate is Lower than that of Unsecured Loans. Why?
Because LAS is backed by collateral, the lender’s risk is much lower than with an unsecured loan. Banks can afford to charge a cheaper rate when you lock in valuable securities. For instance, the HDFC loan against securities interest rate is explicitly “lower than unsecured loans” since assets secure it. Similarly, credit experts explain that LAS “typically offers lower interest rates than traditional loans”. In practice, personal loan rates in India can range ~8.75 - 49%, while LAS rates usually stay in the 8.75% and 15% band. This wide gap reflects the reduced risk (collateral is pledgeable vs. no collateral).
Current LAS Rates by Major Lenders
Below are representative LAS rate ranges (annual % p.a.) from leading banks/NBFCs. Note that actual offered rates vary by borrower profile, loan amount, and type of security.
|
Provider |
LAS Type / Details |
Interest Rate (p.a.) |
|
HDFC Bank |
Equity LAS |
8.50% – 17.50% (IRR) |
|
HDFC Bank |
Debt LAS |
6.75% – 13.80% |
|
State Bank of India |
Loans against Mutual Funds, NSC/KVP, etc. |
10.75% – 11.25% |
|
ICICI Bank |
Standard LAS |
8.75% – 11.75% |
|
Axis Bank |
Physical LAS |
11.50% – 13.75% |
|
Axis Bank |
24×7 Digital LAS (Overdraft) |
11.99% |
|
Kotak Mahindra Bank |
Standard LAS |
8.00% – 11.00% |
|
Tata Capital |
Standard LAS |
9.50% – 14.00% |
|
Punjab National Bank |
Standard LAS |
From 9.25% |
|
IndusInd Bank |
Standard LAS |
From 9.51% |
|
Yes Bank |
Standard LAS |
From 9.75% |
|
Bank of Baroda |
Standard LAS |
From 9.90% |
|
Axis Bank |
Standard LAS |
From 9.99% |
|
IDBI Bank |
Standard LAS |
From 10.10% |
|
Bajaj Finserv |
Stocks / Mutual Funds |
From 8% |
|
Bajaj Finserv |
Insurance / ULIP policies |
Up to 24% |
|
IIFL Finance (NBFC) |
Standard LAS |
10% – 18% |
|
SMC Finance (NBFC) |
Standard LAS |
12% – 18% |
|
Edelweiss (NBFC) |
Standard LAS |
8% – 18% |
Many other lenders (IDFC First, Federal Bank, Kotak, etc.) also offer LAS. In general, Loan Against Securities interest rates are around 8–9% (seen at PNB, IndusInd), while mid-tier customers often see rates of ~10–13%.
Personal Loan Against Securities vs. Business Loan Against Securities
|
Feature |
Personal LAS |
Business LAS |
|
Eligible Applicants |
Salaried / Self-employed |
Companies / MSMEs |
|
Collateral |
Shares, Mutual Funds, Bonds, Insurance |
Shares, Mutual Funds, Bonds, Insurance |
|
Interest Rates |
~8.75% – 15% |
~12% – 18% |
|
Repayment |
Overdraft / Flexible |
Overdraft / Flexible |
|
Benefits |
Quick liquidity, low cost |
Working capital, fast access, competitive rates |
How My Mudra Helps You Access Lower LAS Rates
My Mudra is an online financial marketplace that connects borrowers with banks and NBFCs. It partners with 90+ banks/NBFCs and claims 10K+ satisfied customers. Through My Mudra’s platform, you can compare multiple LAS offers at once. Our highlight features for LAS are
- Quick disbursals
- Attractive Interest Rates
- Flexible Repayment
My Mudra negotiates on your behalf. For example, My Mudra gives you same-day disbursal and interest charged only on the funds you actually withdraw, which can speed up access to capital.
By applying via My Mudra, you fill a single form, and the platform matches you to lenders. This streamlines documentation and often yields better deals than approaching banks directly. Our tagline already emphasises low rates and fast loans. It even notes borrowers get “instant liquidity without selling assets”.
So, My Mudra’s role is to find you competitive LAS rates across the market. Instead of visiting each bank, borrowers can rely on My Mudra’s network (90+ lenders) to surface the lowest available interest and facilitate the loan process.
Summing Up
Loan Against Securities offers a low-cost way to borrow against your investments. As of 2026, top banks and NBFCs quote rates starting roughly 6.75%–9% for prime borrowers, though typical customers see 10–15%. Platforms like My Mudra help you navigate the options: by comparing 90+ lenders online, you can secure the best available rate and get quick approval. Always shop around (or use a smart aggregator) to ensure you truly get the lowest Loan Against Securities interest rate for your needs.
Also Read:
- How to Get Loan Against Mutual Funds
- What is Loan Against Securities?
Frequently Asked Questions
What exactly is a loan against securities?
It’s a secured loan where you pledge financial assets (shares, mutual funds, bonds, insurance policies) as collateral to get cash. You retain ownership of your assets while using them to back the loan. The bank lends up to a percentage of your portfolio value (e.g., typically 50–80%) and charges interest only on the overdraft used.
Why is LAS usually cheaper than a personal loan?
Because your investment is collateral, the lender’s risk is lower. Banks pass on this safety as a lower interest rate. Experts note that LAS rates (often ~8.75–15%) are well below unsecured loan rates. For example, HDFC Bank explicitly advertises that its LAS rate is lower than unsecured loans. In practice, LAS interest often tracks around 8–12% for prime borrowers, versus 10–20%+ for unsecured loans.
Which lenders currently offer the lowest LAS rates?
In 2025, the loan against securities lowest interest rate typically comes from major banks like PNB and IndusInd (around 9 - 9.5%), as well as NBFCs like Edelweiss and Bajaj. HDFC Bank’s LAS (debt) goes as low as 6.75%. Many other banks offer sub-10% starts: Yes Bank at ~9.75%, Axis around 11–13%, ICICI around 11%, etc. In general, 8–10% p.a. is the best you can get from top-tier lenders today.
How do I get low rates on loan against securities?
You usually need a strong credit profile and high-quality collateral. Maintaining a lower LTV (e.g. 50%) also helps. To find the absolute lowest rate, comparing multiple offers is key. This is where My Mudra helps: it lets you submit one form and instantly see quotes from dozens of banks and NBFCs. By comparing through My Mudra, you can pick the lender offering the minimum rate for your profile.
Can businesses also use LAS?
Yes. LAS is available to companies and professionals, too. In fact, many NBFCs like SMC Finance and Cholamandalam cater specifically to business/SME borrowers. The terms are similar: you pledge approved securities and get a working-capital-type overdraft. Business borrowers simply present company or professional income details. The interest rates are similar to personal LAS, often in the 10–18% range, but can be negotiated via the My Mudra platform.
What affects my Loan Against Securities interest rate?
The rate you pay depends on the collateral and LTV. For example, lenders allow up to ~50% LTV on shares (so higher pledged value yields a bigger loan at better rates) and often ~80% on mutual funds. More volatile assets or higher LTV will attract higher interest. Your credit history and loan tenure also play a role. Always compare offers – a small difference (e.g., 9.0% vs 10.5%) can save lakhs over time. So, a loan against shares interest rate comparison is necessary.
Anjali Singh
Assistant Manager
Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.
