Eligibility Criteria for LAS in India: Everything You Need to Know

If you've ever needed quick access to cash but didn't want to sell your investments, you're not alone. Many Indian investors face this challenge. That’s where a Loan Against Securities (LAS) comes in.

LAS is a secured loan where you pledge your financial assets like mutual funds or shares to get a line of credit. You continue earning on your investments, while meeting your liquidity needs. Sounds smart, right?

In this guide, we’ll help you understand whether you qualify for a LAS in India, what documents are needed, and how eligibility is determined. If you’re considering unlocking your portfolio’s value without breaking it, keep reading.

Who Can Get a Loan Against Securities?

Eligibility for LAS is fairly straightforward — but lenders still look at a few essentials before approving your credit line.

What’s the minimum age limit?

To apply for a Loan Against Securities in India, you must be at least 18 years old. However, some lenders prefer applicants to be 21+. A valid KYC-compliant ID such as Aadhaar, PAN, or passport is mandatory.

Do you need a stable income?

Yes, most lenders look for consistent income. While LAS is asset-backed, your repayment ability still matters. Salaried individuals, professionals, and business owners with regular income are typically eligible.

Example: Priya, a salaried IT professional earning ₹50,000/month, used her mutual fund portfolio to secure a ₹3 lakh loan.

What types of securities are accepted?

Most lenders accept:

• Mutual funds (debt, equity, hybrid)
• Listed shares (held in demat)
• Bonds, ETFs, and government securities

If you're looking for a loan against demat shares in India, ensure your shares are part of the lender’s approved ISIN list.

Can NRIs or students apply?

NRIs can apply through select banks or NBFCs with an Indian resident co-applicant. Students, unless earning or with an eligible guarantor, typically don’t qualify. Co-ownership with a guardian may help.

What Documents Do You Need to Apply?

Let’s look at the basic paperwork involved. These help your lender verify your identity, income, and securities.

What identity proof is needed?

You’ll usually need:

• PAN card (mandatory)
• Aadhaar card or passport
• Address proof (utility bill, voter ID, or Aadhaar)

Is income proof always necessary?

Yes, especially for salaried or self-employed individuals. Lenders may ask for:

• Latest salary slips (last 3 months)
• Form 16 or ITR (last 2 years)
• Bank statements (last 6 months)

These help verify the income criteria for LAS.

Do you need Demat account access?

Absolutely. Since LAS involves pledging digital securities, you must hold a Demat account. Access allows lenders to validate your holdings and place a lien.

Example: Rahul pledged his Reliance and TCS shares via his NSDL(National Securities Depository Limited) demat account to get a ₹5 lakh LAS.

How do banks verify your securities?

Banks use the ISIN codes to cross-check if your shares or mutual funds are eligible. They may also review daily NAVs (Net Asset Values), AMC tie-ups, and credit ratings. Verification is usually automated via platforms like NSDL, CDSL, and CAMS.

How Is Your Eligibility Calculated?

Eligibility is not just about your documents—it also depends on your investments and their market value.

How much can you borrow?

Most lenders offer between 50% to 70% of your portfolio’s value. This is known as the Loan-to-Value (LTV) ratio. For example, if you pledge ₹10 lakh worth of mutual funds, you may get a loan of up to ₹7 lakh depending on the scheme type.

What affects your LAS limit?

Factors that influence your sanctioned amount include:

• Type of security (equity funds often carry lower LTVs than debt funds)
• Market volatility
• Your overall portfolio size
• Specific lender policies

Does your credit score matter?

While LAS is backed by assets, your credit score still plays a role. A good score may help you get:

• Lower interest rates
• Faster disbursal
• Higher limits for top-ups

Can joint holdings affect eligibility?

Yes. If the mutual funds or shares are held jointly, all holders may need to sign loan documents. Some lenders require both holders to meet eligibility.

Tip: Always check if your securities are in single or joint names before applying.

Conclusion

If you've built up a solid investment portfolio, it’s time to let it work for you. A Loan Against Securities in India offers a smart, flexible way to access funds without selling your investments. Whether you need quick liquidity for a family emergency or short-term business needs, LAS is a cost-effective solution.

Check your eligibility today and explore how Quicklend can help you unlock funds within hours – with zero disruption to your wealth.

This is general guidance. For personalized loan advice, contact our advisors.