LAS (Loan Against Securities) is a Loan availed against your pledged securities as collateral with a bank. It allows you to raise instant funds against shares, mutual funds, insurance etc., without selling them. Pledge your securities against your investments and get an overdraft facility of up to a certain value.
For smooth transactions, a current account is opened in the name of the customer. The rate of interest is calculated only on the amount withdrawn by you and only for the period of utilization.
Types of securities can be pledged:
Shares, Equity & Debt Mutual Funds, Kisan Vikas Patra (KVP), Fixed Maturity Plans (FMP), Insurance policies issued by LIC and select Private Insurance Companies, Non-Convertible Debentures (NCD), Tax free Bonds (RBI, NABARAD, NHAI, PFC, IRFCL, HUDCO, IIFCL, NHB, REC, and IREDA).