How to Apply for a Loan Against Bonds in 2025

If you hold bonds and suddenly need funds, you don’t always have to sell your investments. A loan against bonds lets you unlock the value of your securities and get quick liquidity while still keeping ownership intact. Whether it’s for an emergency expense, business growth, or simply managing a cash crunch, this option can give you financial flexibility. 

However, before you apply, it’s important to understand who is eligible and how the process works, so you can make confident, well-informed choices

Key Takeaways

• Learn the eligibility criteria before applying for a loan against bonds in India.
• Understand the step-by-step application process to avoid delays and mistakes.
• Explore how Quicklend’s resources and tools can simplify your borrowing journey.

Who is eligible to apply for a loan against bonds in India?

Eligibility varies slightly across lenders, but the standard checklist typically includes the following:

• Age requirement: Most lenders require applicants to be at least 21 years old and not older than 65 at the time of loan maturity.
• Residency: You must be a resident Indian (NRIs may be eligible with select banks/NBFCs).
• Ownership of bonds: You should hold bonds issued by SEBI-registered entities, government bonds, or corporate bonds listed with recognized exchanges.
• Credit profile: A healthy credit score (usually 650+) improves your chances of approval.
• Income source: Though loans against bonds are secured, lenders may still check your repayment capacity.

What documents do I need to submit for a loan against bonds?

To ensure faster approval, keep the following documents ready:

• KYC documents: Aadhaar, PAN card, passport, or voter ID.
• Proof of income: Latest salary slips, bank statements, or ITR (depending on the lender).
• Bond holding proof: A Demat statement showing ownership of eligible bonds.
• Photographs: Passport-sized recent photographs.

Some digital lenders offer a completely paperless process, where your Demat and KYC details can be verified online.

How do I apply for a loan against bonds step by step?

Here’s a simple walkthrough:

1. Research lenders – Compare banks, NBFCs, and fintech platforms like Quicklend to identify the best loan terms.
2. Check eligibility – Use an online eligibility checker or directly contact the lender.
3. Submit application – Fill in details online/offline and upload necessary documents.
4. Pledge bonds – The lender will mark a lien on your Demat account against the pledged bonds.
5. Verification & approval – Your documents and bond value will be assessed.
6. Loan disbursal – Once approved, funds are credited directly to your bank account.

Many lenders offer same-day disbursal if your documents and bond holdings are verified instantly.

How much loan amount can I get against my bonds?

The loan amount depends on the Loan-to-Value (LTV) ratio, which is usually:

• 50 – 70% of the bond’s market value (depending on issuer and credit quality).
• Government bonds typically fetch higher LTV ratios than corporate bonds.
• The minimum loan amount can start from ₹50,000, going up to several crores for HNIs.

What are the benefits of taking a loan against bonds?

• No need to liquidate investments – You retain ownership and potential returns.
• Lower interest rates compared to unsecured personal loans.
• Quick processing and disbursal – Ideal for urgent funding needs.
• Flexible repayment options – Some lenders allow bullet repayment at maturity.

Conclusion

Loans against bonds can be a practical solution for quick funding, allowing your investments to work for you instead of being liquidated. By staying informed about the eligibility and application process, you position yourself to make confident financial choices and avoid unexpected setbacks.

For a smooth experience, platforms like Quicklend offer valuable support, insights, and tools to help you unlock the full potential of your bond portfolio.