Funding Against Listed Shares, Mutual Funds, and Financial Assets
In today’s fast-moving world, investors often face a common situation. They need funds urgently, but they do not want to sell their investments. Selling shares or mutual funds can break long-term wealth plans. It may also lead to missed market growth. That is why secured funding options like loan against shares and loan against mutual funds are becoming popular.
With a loan for shares and asset, you can unlock liquidity by pledging your financial securities instead of redeeming them. You can also apply loan against securities through a smooth and digital process. Many lenders now offer loan against shares online, making borrowing faster, simpler, and more transparent
However, lenders only accept securities from a loan against shares approved list, which includes highly liquid and exchange-approved stocks. If eligible, you may even get an instant loan against shares, helping you access funds quickly without disturbing your portfolio.
Loan Against Shares: Turn Your Investments into Instant Funds
A loan against shares is one of the smartest ways to raise funds without selling your investments. Many people hold equity shares for long-term wealth creation. But sometimes, urgent needs come up. You may need money for business expansion. You may need funds for personal expenses. In such situations, selling shares may not be the best decision. This is where an instant loan against shares becomes useful.
In this loan, you pledge your listed shares as collateral. The lender provides you with funds based on the value of your holdings. You still remain the owner of the shares. This means you can continue enjoying dividend benefits and long-term appreciation. Only the shares are marked as pledged until repayment is completed.
A major advantage is speed. As this type of loan is secured, approval is usually faster than for unsecured loans. Many lenders now offer loans against shares online, which makes the process even easier.
For example, if you own shares worth ₹20 lakh, the lender may offer funding up to a certain percentage of that value. You get liquidity without breaking your portfolio. This is why loan for shares and asset solutions are gaining popularity among investors and business owners.
A loan against shares is also flexible. You pay interest only on the amount you use. It works like an overdraft facility. This makes repayment more comfortable and cost-effective.
Loan Against Securities (LAS): Listed Shares, Promoter Holdings & Structured Funding
Loan Against Securities (LAS) is a secured lending solution that allows individuals, promoters, and corporates to unlock liquidity by pledging financial securities. These securities may include listed shares, promoter holdings, mutual funds, bonds, or other marketable instruments. Instead of selling investments, borrowers can use them as collateral to raise funds quickly and efficiently.
This funding option is ideal for business expansion, working capital needs, strategic investments, or personal liquidity requirements. It ensures that long-term wealth creation remains undisturbed while short-term financial needs are met.
Loan Against Listed Shares
Listed shares are equity shares that are traded on recognized stock exchanges. Lenders provide loans against approved listed shares based on their market value and volatility.
- Quick processing and digital pledge facility
- Loan eligibility based on approved stock list
- Flexible withdrawal through overdraft structure
- Interest charged only on utilized amount
- Ideal for short-term liquidity management
For example, if the market value of pledged shares is ₹50 lakh, lenders may provide 50%–60% funding depending on the stock category and risk assessment.
Funding Against Promoter Holdings
Promoters of listed companies often hold substantial equity stakes. Instead of diluting ownership by selling shares, promoters can leverage their holdings to raise structured funding.
- Non-dilutive capital raising option
- Useful for expansion or acquisition financing
- Strategic liquidity without affecting control
- Customised loan-to-value (LTV) structures
- Structured repayment models
This solution is commonly used for business growth, refinancing existing debt, or supporting new ventures while retaining promoter control.
Structured Loan Against Securities (Structured LAS)
Structured LAS is a customized financing solution designed for high-value portfolios and complex funding requirements. It is generally tailored for HNIs, corporates, and promoters with diversified holdings.
- Combination of term loan and overdraft facility
- Customized margin requirements
- Portfolio-backed financing solutions
- Flexible repayment tenure
- Risk-managed lending structure
Structured LAS ensures better capital efficiency. It balances risk, valuation comfort, and liquidity needs while preserving long-term investment strategy.
Funding Against Promoter Holdings for Rs 50 Crore+ Requirements
For large funding requirements, promoters of listed companies often prefer raising capital against their equity holdings instead of diluting ownership. This structure supports strategic growth while retaining long-term control.
Where It Is Commonly Used
- Business expansion and capex execution
- Refinancing of existing high-cost debt
- Bridge funding for acquisitions and strategic moves
- Working capital support for large operating cycles
Typical Structure for 50 Crore+
Transactions in this range are usually structured with customized LTV, margin and risk controls. Lenders evaluate promoter profile, share liquidity, concentration risk, and compliance comfort before final sanction.
The final structure may include overdraft, term loan, or hybrid format based on funding purpose and repayment visibility.
Why Promoters Prefer This Route
It is a non-dilutive capital strategy. Promoters can unlock liquidity while preserving ownership, voting rights, and long-term value participation in their core business.
With disciplined collateral monitoring and planned repayment, this becomes a practical route for high-ticket corporate funding.
Loan Against Shares Approved List: Know What Shares Are Eligible
One important point in a loan against shares is eligibility. Not all shares can be pledged. Lenders maintain a loan against shares approved list. Only shares from this list are accepted as collateral. This ensures that the pledged securities have good liquidity and stable market value.
Approved shares are usually those that are actively traded on recognised stock exchanges. Blue-chip companies and high-volume stocks are commonly included. Shares with low liquidity or high volatility may not be accepted. This protects both the borrower and lender from sudden market risk.
Before applying, it is important to check whether your holdings are eligible. If your shares are approved, you can easily pledge them and get access to funding. This is one reason why loans against shares are considered structured and safe secured loans.