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At GLP Wealth, we facilitate access to Loan Against Securities solutions through eligible banks and financial institutions, helping investors explore financing options against approved securities such as mutual funds, listed shares, bonds, and other qualifying investments.

LAS can be particularly useful for investors, business owners, professionals, and High-Net-Worth Individuals (HNIs) who require liquidity without prematurely liquidating long-term investments.

Key Features of Loan Against Securities

1. Liquidity Without Selling Investments

• Overview: Investors can obtain funds by pledging eligible securities while retaining ownership of the underlying investments.
• Key Focus: Helps address liquidity requirements without necessarily disturbing long-term investment positions.
• Benefit: Investors may continue to participate in the potential performance of pledged securities, subject to lender terms and applicable restrictions.

2. Loan Against Eligible Securities

• Overview: Financing may be available against eligible financial assets such as listed equity shares, mutual fund units, bonds, and other approved securities.
• Eligibility: The accepted securities and applicable lending value depend on the lender's approved list and internal policies.
• Key Focus: The borrowing limit is generally determined based on the market value and applicable loan-to-value ratio of the pledged securities.

3. Flexible Funding Solution

• Overview: LAS can provide access to funds for personal, professional, or business-related financial requirements, subject to the lender's permitted end-use conditions.
• Key Focus: Depending on the facility, borrowers may have flexibility in withdrawing funds within an approved credit limit.
• Benefit: Interest may generally apply to the utilised loan amount rather than the entire sanctioned limit, depending on the lender and facility structure.

4. Convenient Repayment Structure

• Overview: Repayment terms can vary depending on the lender, type of securities pledged, facility structure, and borrower profile.
• Key Focus: Certain LAS facilities may operate as an overdraft or credit-line arrangement, providing flexibility in utilisation and repayment.
• Benefit: Suitable for investors seeking short-term or recurring liquidity while maintaining their investment portfolio.

Who Can Consider LAS?

Loan Against Securities may be suitable for:

• Investors requiring short-term liquidity
• High-Net-Worth Individuals (HNIs)
• Business owners managing temporary cash-flow requirements
• Professionals requiring access to additional funds
• Investors who prefer not to liquidate eligible long-term investments
• Individuals seeking liquidity against an existing investment portfolio

Important Considerations

The value of pledged securities may fluctuate with market movements. If the value falls below the lender's required margin, the borrower may be required to provide additional collateral, repay part of the outstanding amount, or take other action as specified by the lender.

Interest rates, loan-to-value ratios, eligible securities, repayment conditions, processing charges, tenure, margin requirements, and other terms vary between financial institutions and are subject to their prevailing policies.

Loan Against Securities can provide a practical bridge between investment continuity and liquidity requirements, allowing eligible investors to access funds while keeping their long-term investments in place.