Explore everything about loan against shares interest rates in 2026. Know the processing fees, loan tenure, and factors that affect your rate. Read our blog now.
Anjali Singh
Assistant Manager
Owning shares isn’t just about long-term wealth. In 2026, your portfolio can also help you meet urgent financial needs, without selling a single stock. This is where a loan against shares comes in. Whether it's for a business requirement, medical emergency, or simply to tide you over a shortfall, this type of loan gives you instant liquidity while keeping your investments intact.
But the key factor is understanding the loan against shares interest rate and how it works in India right now.
A loan against shares helps you access funds by using your equity investments as security for a loan. The banks and NBFCs decide your loan limit. It is based on the current market value of the shares you use to secure the loan. This limit is often up to 50 to 70% of the value of the shares. It depends on the lender and the risk profile of the stocks.
Since you don’t have to sell your investments, a LAS gives you a smart way to manage your cash flow while still keeping ownership of your portfolio.
In 2026, with markets swinging up and down, investors have become more cautious about selling their holdings. In such a climate, a loan against shares in India becomes a preferred choice, offering:
Here’s a snapshot of the loan against shares interest rate offered by top banks and NBFCs this year:
|
Lender |
Interest Rate (p.a.) |
Processing Fee |
|
HDFC Bank |
9.50% to 10.50% |
0.50% of loan amount |
|
ICICI Bank |
8.90% to 10.75% |
₹999 to 1% |
|
Kotak Securities |
10.50% to 12.00% |
₹500 onwards |
|
Bajaj Finserv |
10.00% to 12.50% |
₹750 onwards |
|
SBI |
9.75% onwards |
₹1,000 onwards |
Let’s look at what determines the loan against shares interest rate offered to you:
Lenders maintain their own list of approved securities. Blue-chip stocks or those with higher market capitalisation attract better loan terms compared to high-volatility or small-cap stocks.
Even though your shares are collateral, your creditworthiness still plays a role. A higher CIBIL score can get you lower interest rates.
Shorter-term loans generally carry lower interest rates. LAS is typically structured for up to 12 to 24 months, with options to renew.
You may choose between:
OD loans may come with slightly higher rates due to flexibility but are interest-efficient for short usage.
With interest rates seeing some upward pressure this year, comparing lenders becomes all the more important.
Loan against shares in India is gaining more popularity with digital lending platforms simplifying the process. Here’s why:
To reduce your borrowing cost, here are a few practical tips:
This product is ideal for:
A loan against shares in India is one of the most efficient and flexible credit options, especially when you know how to get the best loan against shares interest rate. It allows access to funds without giving up your investments. Whether you need quick capital or are just looking for liquidity in the short term, knowing the right loan against shares interest rate can help you make the best decision.
My Mudra partners with top banks and NBFCs to make your loan against securities process faster, simpler and completely digital. So, if you're holding onto your shares but need funds, letting your portfolio work for you can be a smart move.
Also Read:
- Is Taking a Loan Against Shares Really Worth It?
- Top Benefits of Taking a Loan Against Stocks
The loan against shares interest rate usually falls between 8% and 12.5% per annum. It depends on the lender, your credit score and the shares used as security.
Yes. If your share prices fall significantly, the lender may ask for a top-up or partial repayment. This is known as a margin call.
Yes, you retain ownership of the shares and continue to receive dividends or bonuses even when they are pledged for a loan.
Only listed shares that are approved by your lender. Typically, large-cap or NIFTY 100 shares are preferred.
Yes, prepayment is usually allowed. Most lenders do not charge penalties for early repayment of LAS, especially if it is an overdraft facility.
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.
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