Loan Against Security Calculator
Calculate the loan amount you can avail against securities based on LTV ratio.
Eligible Loan Amount
₹5,00,000
Breakdown
Monthly EMI
₹10,138
Total Interest
₹1,08,292
Total Payment
₹6,08,292
Schedule
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | ₹84,720 | ₹36,938 | ₹4,15,280 |
| 2 | ₹91,752 | ₹29,907 | ₹3,23,528 |
| 3 | ₹99,367 | ₹22,291 | ₹2,24,161 |
| 4 | ₹1,07,615 | ₹14,044 | ₹1,16,547 |
| 5 | ₹1,16,547 | ₹5,112 | ₹0 |
What is Loan Against Security?
A Loan Against Security (LAS) allows you to borrow funds by pledging financial assets such as shares, mutual funds, bonds, or insurance policies as collateral. Instead of selling your investments, you temporarily pledge them and receive a loan based on a percentage of their market value.
This percentage is called Loan-to-Value (LTV). LAS uses a reducing balance method, which means you pay interest only on whatever you still owe, not the original amount throughout the entire loan.
How Loan Against Security Works
Lenders won't hand over cash equal to your full portfolio value — they need a buffer in case markets tumble. For example, if you own shares worth ₹1,00,000 and your lender offers a 50% LTV, you can borrow ₹50,000 while your shares stay pledged.
Because the lender has your investments as collateral, LAS typically charges much lower interest than personal loans or credit cards.
Reducing Balance Interest
Interest charged only on outstanding principal, not the original amount
Lower Interest Rates
Typically cheaper than personal loans or credit cards due to collateral backing
Retain Ownership
Your investments stay pledged — you still benefit from any market appreciation
Key Benefits
No Need to Sell
Access funds without liquidating your investments
Lower Rates
Secured loans enjoy lower interest rates than unsecured options
Market Upside
Continue to benefit from appreciation in pledged securities
Quick Disbursement
Faster processing compared to traditional loans