How to Apply for a Loan Against Securities (LAS): Step-by-Step Guide for 2025

Taking a loan against securities (LAS) is one of the fastest ways to unlock funds without breaking your investments.

But if you've never applied for one before, you might be wondering — what’s the process actually like?

Understanding the step-by-step application process ensures you can secure funds efficiently while retaining ownership and potential returns from your investments

Key Takeaways

• LAS lets you borrow against shares, mutual funds, ETFs, or bonds.
• The entire process — from documentation to disbursal — can be completed in a few hours to 1–2 working days.
• You must hold your securities in demat or folio form with approved R&T agents (e.g., CAMS/KFinTech).
• Most lenders now support digital applications with online pledge setups.
• Disbursal is quick, and the lien is removed as soon as the loan is repaid.

What is the LAS application process?

Here's a simple breakdown of each step, from eligibility to disbursal.

Step 1: Check your eligibility

Before applying, make sure you meet the basic criteria:

• You're an Indian resident (individual or HUF)
• You own eligible securities (shares, mutual funds, etc.)
• You have an active demat account or folio number
• Basic KYC is completed (Aadhaar, PAN, address proof)

Note: NRIs and companies may also apply depending on lender policies.

Step 2: Select the securities to pledge

Choose what you'll offer as collateral:

• Equity shares (listed on NSE/BSE)
• Mutual Funds (equity or debt, held in demat or through R&T agents)
• ETFs, bonds, or government securities

Make sure the securities are:

• On the lender’s approved list
• In your name or held jointly (with co-holder’s consent)

Step 3: Approach the lender or fintech platform

You can apply through:

• Your bank/NBFC
• A fintech partner like Quicklend (if applicable)
• Your broker, if they offer LAS services

Most lenders now allow you to initiate the process online or via their mobile app.

Step 4: Fill out the application form

This includes:

• Personal & contact details
• Details of securities to pledge
• Preferred loan amount or overdraft limit
• Bank account details for disbursal

Tip: Keep your PAN, Aadhaar, and security statements handy.

Step 5: Complete document verification & KYC

You’ll need to submit:

• PAN card
• Aadhaar card
• Recent passport-size photo
• Bank account proof
• Demat account statement or MF folio details

Some lenders may offer video KYC for added convenience.

Step 6: Pledge your securities

Once verified, you’ll receive instructions to pledge your securities.

This is done via:

• NSDL/CDSL portal for shares
• CAMS/KFinTech link for mutual funds

The securities are then lien-marked in favor of the lender — meaning you can’t sell or redeem them until the loan is repaid.

Step 7: Loan approval and disbursal

Once your pledge is accepted:

• The loan is approved
• Amount is disbursed to your bank account within hours to 1 working day
• You can start using the funds immediately

For overdraft-based LAS, you’ll receive access to a credit line instead of a lump sum.

Step 8: Monitor and repay

You’ll receive regular updates about:

• Interest charged (usually monthly or quarterly)
• Margin requirements (especially if markets fall)
• Loan tenure and due dates

Once you repay the loan in full, the lien is removed, and you regain full control over your securities.

Conclusion

The loan against securities application process is fast, secure, and increasingly digital. As long as your investments are in the right format and your documents are in place, you can unlock instant liquidity without ever touching your core investments.

It’s one of the simplest ways to meet financial needs — whether it’s for emergencies, business funding, or planned expenses.