Loan Against Shares – LAS


What is Loan Against Shares (LAS)?

LAS is a facility where client can avail loan by mortgaging securities as collateral in favor of lender like ECL Finance Ltd (Edelweiss). The loan amount will be determined on the basis of valuation of mortgaged securities post applicable haircuts.

Why should one opt for LAS?

  • Enhance Returns: You can unlock the value of your idle investments while continuing to enjoy the shareholder benefits such as dividends and bonuses. LAS allows you to own more securities than you could on a cash-only basis and potentially enjoy a greater return on your investment capital.
  • Liquidity, Flexibility, Defer LT taxes: You can take care of his immediate expenses or can get liquidity for investing into capital markets without having to sell off your long term investments in shares. You can take advantage of timely market opportunities or make investment changes when you want. Keep your investment strategy on track and defer any capital gains taxes that might result from selling securities to meet your financing needs.
  • Diversification: You can use LAS to diversify your portfolio if you hold a concentrated stock position.

Why LAS from Edelweiss?

  • Ease of documentation: LAS facility can be linked to your existing demat account with Edelweiss. You don’t need to open a separate account for the same.
  • Ease of drawing: Borrow at any time once your LAS account is approved and in place. No additional forms or applications are required. Loan taken can be used for any of your personal financial needs without a separate application.
  • Ease of repayment: You can repay the loan through various modes viz, online transfer to ECL Finance accounts, deposit the cheque or sale of shares as per your choice. There is no set repayment schedule. As long as the necessary margins are maintained in your accounts, you can choose to keep/repay the loan as per your convenience.
  • Commercials: Competitive interest rates. Interest is charged only on amount used and for the duration of use. No commitment charges. No minimum utilization charges. No repayment and prepayment overheads. Nominal documentation charges. One time processing fees.
  • Clear Communication: Prompt and clear communication via Email/SMS/RM at various stages of client’s association with us.
  • Loan Tenure: 1 year with an option to renew it further