A Loan Against Securities (LAS) is a financial product offered by Guardian Securities Private Limited that allows you to use your marketable securities (such as stocks, bonds, mutual funds) as collateral to secure a loan. This enables you to access funds while retaining ownership of your securities.

LAS involves pledging your securities as collateral to Guardian Securities Private Limited. Based on the value of your pledged securities, we offer you a loan amount known as the Loan-to-Value (LTV) ratio. While you continue to hold ownership of the securities, the loan amount is determined by a certain percentage of their value.

Marketable securities like stocks, bonds, mutual funds, and exchange-traded funds (ETFs) are typically eligible for LAS. The eligibility criteria may vary, so contact our experts for specifics.

The loan amount is determined based on the value of the pledged securities and the Loan-to-Value (LTV) ratio. LTV ratios vary depending on factors such as, the type of securities and prevailing market conditions.

The tenure of the LAS loan is predetermined and agreed upon between you and Guardian Securities Private Limited. It can vary, but generally, LAS loans have medium-term durations.

Market fluctuations can impact the value of your pledged securities. If the value drops significantly, you may be required to provide additional collateral or repay part of the loan to maintain the required LTV ratio.

Yes, you can prepay the LAS loan before the agreed-upon tenure. However, there may be prepayment charges or fees, depending on the terms of the loan agreement.

If you’re unable to repay the loan, Guardian Securities Private Limited may liquidate the pledged securities to recover the outstanding amount as per the terms of the agreement.

In most cases, you can continue trading in the pledged securities. However, any changes to the pledged securities (such as selling or transferring) might need prior approval from Guardian Securities Private Limited.

The taxation aspects of LAS loans can vary based on local regulations and individual circumstances. It’s advisable to consult a tax advisor for accurate guidance.

Loan amounts for LAS can vary, with both minimum and maximum limits. These limits are often determined by factors such as the value and type of the pledged securities.

You can monitor your pledged securities’ status through regular updates from your Demat account provider. Guardian Securities Private Limited may also provide periodic reports on the status of your loan and securities.

Before applying for a LAS, consider the following:

• Understand the Loan-to-Value (LTV) ratio and how it impacts your loan amount.
•  Evaluate the interest rates, repayment terms, and any associated fees.
• Assess the potential risks, such as market volatility affecting your pledged securities’ value.
• Have a clear plan for utilising the loan amount and repaying it within the agreed-upon timeline.

LAS is typically designed for productive purposes such as business expansion, emergencies, or other genuine financial needs. It’s not recommended for speculative activities or day trading.

Pledged securities are held as collateral until the loan is repaid. If you wish to withdraw the pledged securities, you would need to repay the loan first or provide alternative acceptable security.

In case of default or non-repayment, Guardian Securities Private Limited may exercise its right to liquidate the pledged securities to recover the outstanding loan amount.

Depending on the terms of the agreement, you might be able to switch or replace the pledged securities with equivalent securities. This process would usually require prior approval from Guardian Securities Private Limited.