Every business requires funding from time to time. Whether to upgrade operations or purchase new premises, business loans help corporates take a higher leap towards progress. Whether your business is small or large, you may require an inflow of funds to take your operations to the next stage of success. However, you could consider putting your securities in the capital market to use. Instead of monetising your investments in securities, why not take a Loan Against Shares (LAS) also known as Loan Against Securities or a Line of Credit (LOC) and leverage your investments.

How does Loan Against Shares work?

The Loan Against Shares is a term loan against equity shares you own. It helps you gain the financial flexibility that you need without disrupting your long-term investment strategy. In terms of your fiscal position, Loan Against Securities is a ​better option to explore instead of bringing your investments in other securities like property and gold in the ambit of loans – the shares you own can generate loans for your business.

How does Line of Credit (LOC) work?

LOC (Line of Credit) is an overdraft facility against your marketable securities. You can draw on this line of credit at any time, but you cannot exceed the maximum limit set by us. The advantage of LOC is that you pay interest only for the actual time period when your business finance is used.

Why do you need LAS or LOC?​

If you are a business owner requiring immediate funds, LAS or LOC is the most appropriate financing solution for you. Businesses with expansion plans, or those requiring funds to procure additional manpower, machinery and tech expertise to scale operations should consider Loan Against Securities. Additionally, salaried individuals in need of immediate liquidity may also opt for this financing solution. Loan Against Securities may also be taken for personal reasons as well – consider it in lieu of loan for marriage or for your child’s education. An advantage to note is that as long as you hold sufficient eligible securities to use as collateral, this type of credit line may be easier to obtain and it is more cost-effective than other alternatives.