Maximise your investments with a loan against stocks in India. Access quick funds, competitive interest rates, and flexible terms without selling your shares.
Anjali Singh
Assistant Manager
When faced with an urgent financial requirement, selling your long-term stock investments is not always the best decision. A smarter alternative could be a loan against stocks. It lets you unlock the value of your investments without giving them up.
Let’s walk through how it works and why more people in India in 2025 are choosing loan against securities as an option.
A loan against stocks, sometimes called a loan against shares, is a secured loan where your listed shares are pledged as collateral. You stay as the legal owner of those shares, but can borrow money based on their value. Most lenders offer around 50% to 70% of the market value, depending on the stock type and their risk appetite.
The best part is, you don’t need to sell your investments to get access to cash. It’s an easy and smart way to raise funds for personal or business needs.
Here’s a brief overview of the process:
With My Mudra, the process is completely digital, fast and transparent. You can access loan against stocks India offerings from trusted banks and NBFCs in just a few clicks.
The financial landscape in India in 2025 has shifted towards smarter credit solutions. Here’s why more investors are choosing loan against shares over traditional credit options.
This loan lets you hold on to your shares, so if they go up in value, you still benefit. Plus, you keep receiving dividends or bonuses while using them to secure a loan.
Because it’s a secured loan, the interest rate is lower than what you’d pay on a personal loan. If you’re looking for a way to meet expenses without draining your finances, this is a much better deal.
Applying for a loan against shares is far more straightforward than most people expect. Thanks to digital lending platforms like My Mudra, you can apply, upload your documents, and receive funds in as little as 24 to 48 hours.
All you need is a demat account, KYC documents, income proof (in some cases), and a stable portfolio of approved shares. It’s far simpler than other secured loans.
Most loan against shares come with flexible tenure options. It ranges from 12 months to 36 months. You can choose a term that matches your financial comfort.
Also, if you opt for an overdraft facility, you only pay interest on the amount you actually use, not on the full sanctioned loan. This can save you a lot in the long run.
While a loan against stocks India has numerous benefits, here are a few things to be cautious about:
Always use a loan calculator and understand the terms before pledging your shares.
My Mudra makes it simple to access loan against shares from multiple banks and NBFCs with one seamless platform. Here’s why we’re the preferred choice:
If you have a solid portfolio and need funds without letting go of your investments, this might be the perfect solution.
A loan against stocks is a simple and effective way to raise funds while keeping your long-term investments intact. It provides you flexibility to borrow, the ability to pay back at your own time and you can continue enjoying the value of your stock holdings.
Make your investments do more for you. To unlock the value of your shares, apply for a loan against securities with My Mudra. It is quick, secure and 100% online.
Also Read:
- What is Loan Against Mutual Funds? Know How It Works
- Where to Buy Direct Mutual Funds
Ans: You can borrow up to 70% of the market value of your approved shares. The exact percentage depends on the stock and lender. This is one of the key benefits of opting for a loan against stocks.
Ans: No. You can’t sell them until the loan is cleared. However, you can swap or add other approved securities depending on your agreement.
Ans: Yes, typically monthly. For overdraft facilities, interest is charged on the utilized amount on a daily reducing basis and billed monthly.
Ans: Only listed and approved shares traded on recognised exchanges are accepted. Blue-chip stocks are generally preferred when applying for a loan against stocks India.
Ans: As a secured loan, timely repayment can help improve your credit score. However, defaults will negatively impact your score, just like any other loan.
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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