Check eligible securities
A lender may accept only selected shares, mutual funds, or other approved securities.
Investment-backed finance
Loan Against Shares
Use eligible shares or securities as a pledge to check a loan without selling them immediately.
Before you start
Loan Against Shares Eligibility and Document Guide
The lender checks the security list, market value, pledge, demat ownership, and your repayment ability.
Important before you apply
Key points to consider for Loan Against Shares
Check these points carefully before choosing an option or starting your application.
Understand market risk
A fall in value can require more security or loan repayment.
Read pledge terms
Check limit, interest, margin, renewal, and sale or invocation conditions.
18 eligibility points
Eligibility Criteria
See the basic conditions normally checked before you can apply.
Eligibility / Criteria - Market Baseline
- Applicant type depends on lender and security.
- For dematerialised shares, some major bank journeys allow only individuals; other lenders may have broader constitution rules.
- Major-bank public criteria examples can allow adult applicants up to a lender-specific upper age (ICICI currently publishes 18-75 for LAS eligibility).
- Valid mobile/email and KYC.
- Shares must be:
- in demat form,
- in the lender's approved scrip/security list,
- free from unacceptable lien/encumbrance,
- capable of being pledged in lender's favour.
- Loan/OD limit depends on:
- current market value,
- lender's approved LTV/margin,
- concentration limits,
- security volatility,
- regulatory/lender caps.
- Margin must be maintained throughout the facility.
- Falling share prices can trigger margin shortfall / top-up / partial liquidation under the agreement.
- Credit and fraud checks still apply even though the facility is secured.
23 document points
Document Requirements
Check which clear and valid documents you should keep ready.
Document Requirements
Common
- LAS application / account-opening form.
- PAN.
- Identity proof.
- Address proof.
- Signature proof.
- Photograph / live KYC where required.
- Mobile and email verification.
- Bank-account details.
- Demat account details / Client Master / recent holding statement.
- Details of securities proposed to be pledged.
- Pledge creation/confirmation through Depository mechanism.
- Loan agreement / OD documents.
- Repayment/interest servicing mandate where required.
Conditional
If lender permits entity applicants for the relevant security class
- Entity PAN.
- Incorporation/registration documents.
- Partnership deed / MOA-AOA / LLP Agreement.
- Board/partner borrowing resolution.
- Authorised-signatory and beneficial-owner KYC.
- ITR and audited Balance Sheet/P&L, often previous 2 years.
If shares are physical
- Usually dematerialisation is required before pledge for digital LAS.
Simple steps
Check a loan against shares in three steps
Follow these three simple steps.
Check your eligibility
Review the income, age, credit, and document points for a loan against shares.
Compare current options
Check the available lender options, total cost, EMI, and important terms.
Apply and track
Continue in your secure account and follow every application update.
Reference Basis
These public sources were checked for this guide. Rules can change, so open the source for the latest official information.