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Ashoka Patkar made post

How long does the disbursement of a loan against securities (LAS) usually take?

Answer
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Tarun Madaan answered.
2 years ago


After you apply for a loan against securities (LAS) account, up on successfully meeting the criteria laid down by the lender, an overdraft account will be set up with your lender.

This account will have a certain drawing limit, which you can utilize as and when required.

Do note that the drawing limit depends upon the quality and quantity of the shares/mutual fund units pledged by you. This is because a lender- bank or non-banking finance company (NBFC) – has its own approved list of stocks.

Your portfolio could be worth Rs. 10.5 crore, but may be the stocks approved by the lender make up for only Rs. 7 lakh. Thus, you will get a loan against the value of stocks approved by the lender- that is Rs. 7 lakh in this case.