Cap Tree Finance

Loan Against Shares

A loan against shares allows you to borrow money against listed securities such as shares, mutual funds, insurance and bonds to meet your financial needs. You can opt for a loan against shares when you need instant financing to meet your personal or business needs.

If you have invested in stocks for the long run, it's a good idea to take a loan against your equity investment. With such loans, investors can meet shortfall fund requirements and still have enough wealth to fulfil long-term financial goals.

Loan Against Securities are typically offered as an overdraft facility in your account after you have deposited your securities. You can draw money from the account, and you pay interest only on the loan amount you use and for the period you use it. For example, you are offered a loan against shares of Rs 2 lakhs.