{"id":11100,"date":"2026-09-01T15:26:03","date_gmt":"2026-09-01T15:26:03","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=11100"},"modified":"2026-09-03T18:53:41","modified_gmt":"2026-09-03T18:53:41","slug":"which-of-your-investments-can-be-used-as-loan-collateral","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/","title":{"rendered":"Which of your investments can be used as loan collateral?"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11122\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/09\/investments-can-be-used-as-loan-collateral.png\" alt=\"investments can be used as loan collateral\" width=\"872\" height=\"581\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/09\/investments-can-be-used-as-loan-collateral.png 624w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/09\/investments-can-be-used-as-loan-collateral-300x200.png 300w\" sizes=\"(max-width: 872px) 100vw, 872px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6abe98cb631b1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6abe98cb631b1\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#Which_of_your_investments_can_be_used_as_loan_collateral\" title=\"Which of your investments can be used as loan collateral?\">Which of your investments can be used as loan collateral?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#What_investments_can_be_used_as_collateral\" title=\"What investments can be used as collateral?\">What investments can be used as collateral?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#Why_are_listed_shares_suitable_for_a_secured_facility\" title=\"Why are listed shares suitable for a secured facility?\">Why are listed shares suitable for a secured facility?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#Can_every_listed_share_be_pledged\" title=\"Can every listed share be pledged?\">Can every listed share be pledged?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#How_much_can_you_borrow_against_eligible_shares\" title=\"How much can you borrow against eligible shares?\">How much can you borrow against eligible shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#What_happens_to_your_shares_after_they_are_pledged\" title=\"What happens to your shares after they are pledged?\">What happens to your shares after they are pledged?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#How_does_the_loan_against_shares_interest_rate_work\" title=\"How does the loan against shares interest rate work?\">How does the loan against shares interest rate work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#What_happens_if_the_share_price_falls\" title=\"What happens if the share price falls?\">What happens if the share price falls?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#Why_should_you_avoid_pledging_unsuitable_investments\" title=\"Why should you avoid pledging unsuitable investments?\">Why should you avoid pledging unsuitable investments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#What_are_the_key_features_of_loan_against_shares\" title=\"What are the key features of loan against shares?\">What are the key features of loan against shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#What_happens_if_you_do_not_repay_on_time\" title=\"What happens if you do not repay on time?\">What happens if you do not repay on time?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#Can_an_EMI_Calculator_help\" title=\"Can an EMI Calculator help?\">Can an EMI Calculator help?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-of-your-investments-can-be-used-as-loan-collateral\/#The_bottom_line\" title=\"The bottom line\">The bottom line<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Which_of_your_investments_can_be_used_as_loan_collateral\"><\/span><span style=\"color: #000080;\"><strong>Which of your investments can be used as loan collateral?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Investors may hold valuable assets but still face temporary cash requirements. A loan against shares can help eligible investors access funds without selling their listed investments.<\/li>\n<li>Under a Loan Against Shares facility, eligible listed shares are pledged as collateral. The investor can therefore raise funds while retaining ownership of the pledged securities.<\/li>\n<li>Bajaj Finance offers Loan Against Shares for eligible investors seeking liquidity against listed shares. The facility can help address financial requirements without forcing investors to liquidate long-term investments.<\/li>\n<li>However, not every investment can automatically be used as collateral. Understanding which securities qualify is essential before applying.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_investments_can_be_used_as_collateral\"><\/span><span style=\"color: #000080;\"><strong>What investments can be used as collateral?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.bajajfinserv.in\/loan-against-shares\">Loan Against Shares<\/a> is specifically designed around eligible listed shares. The lender determines which securities can be accepted based on applicable eligibility criteria.<\/li>\n<li>Investors should therefore check the approved list before applying. Securities that are not approved or have limited liquidity should not be pledged without understanding the applicable conditions.<\/li>\n<li>Shares should also be free from existing encumbrances. This helps ensure that the lender can establish the required security interest over the pledged assets.<\/li>\n<li>The value of eligible shares also influences the amount that can be sanctioned.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_are_listed_shares_suitable_for_a_secured_facility\"><\/span><span style=\"color: #000080;\"><strong>Why are listed shares suitable for a secured facility?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Listed shares have an observable market value. Their prices can be tracked through recognised market platforms.<\/li>\n<li>This makes it possible for lenders to assess the value of eligible securities when determining the borrowing limit.<\/li>\n<li>However, listed shares remain market-linked assets. Their value can increase or decrease after they are pledged.<\/li>\n<li>Therefore, investors should understand the potential effect of market movements on their collateral.<\/li>\n<li>Bajaj Finance enables eligible investors to use listed shares as collateral under its Loan Against Shares facility. The availability and value of the facility remain subject to applicable terms.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Can_every_listed_share_be_pledged\"><\/span><span style=\"color: #000080;\"><strong>Can every listed share be pledged?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>No. Listing alone does not automatically make a share eligible for Loan Against Shares.<\/li>\n<li>Lenders may specify particular securities that can be accepted. They may also consider liquidity, market value, and other applicable criteria.<\/li>\n<li>Investors should check the lender&#8217;s approved securities before applying.<\/li>\n<li>It is also important to avoid pledging securities without understanding the applicable terms. Low-liquidity or unapproved investments may not provide suitable collateral for this facility.<\/li>\n<li>Bajaj Finance evaluates eligible securities according to its applicable lending criteria.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_much_can_you_borrow_against_eligible_shares\"><\/span><span style=\"color: #000080;\"><strong>How much can you borrow against eligible shares?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The available loan amount depends on the value of the eligible shares pledged. Other lending conditions may also affect the sanctioned amount.<\/li>\n<li>Under the stated Loan Against Shares guidelines, loan amounts can range from Rs. 25,000 to Rs. 1,000 crore.<\/li>\n<li>The value of your investment does not necessarily equal the amount you can borrow. Lenders apply applicable limits to protect against changes in collateral value.<\/li>\n<li>Borrowers should therefore determine the actual requirement before pledging securities.<\/li>\n<li>The Borrowing only the required amount can also help keep repayment obligations manageable.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_happens_to_your_shares_after_they_are_pledged\"><\/span><span style=\"color: #000080;\"><strong>What happens to your shares after they are pledged?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Pledging shares does not mean immediately selling them. The securities remain part of the investor&#8217;s holdings while serving as collateral.<\/li>\n<li>The pledge remains in place until the applicable loan obligations are fulfilled.<\/li>\n<li>This can help investors retain their long-term investment position. However, the pledged securities remain subject to the terms of the facility.<\/li>\n<li>Investors should understand their responsibilities regarding the pledged assets.<\/li>\n<li>They should also monitor their loan account and make repayments on time.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_does_the_loan_against_shares_interest_rate_work\"><\/span><span style=\"color: #000080;\"><strong>How does the loan against shares interest rate work?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.bajajfinserv.in\/loan-against-shares-interest-rate-and-processing-fees\">Loan against shares interest rate<\/a> can vary based on factors such as the value and type of securities pledged.<\/li>\n<li>The applicable rate may also vary within the product category based on specific lending criteria.<\/li>\n<li>Borrowers should understand whether the applicable interest rate can change during the loan tenure. Variable rates can affect the overall cost of borrowing.<\/li>\n<li>The interest rate should not be the only factor considered. Processing fees, documentation charges, stamp duty, penal charges, and other applicable costs can also affect the total borrowing cost.<\/li>\n<li>Bajaj Finance provides applicable Loan Against Shares terms based on the product and borrower requirements. Investors should review the current terms before applying.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_happens_if_the_share_price_falls\"><\/span><span style=\"color: #000080;\"><strong>What happens if the share price falls?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Share prices can fluctuate because of market conditions. A decline in the value of pledged shares can affect the collateral supporting the facility.<\/li>\n<li>Lenders may have specific requirements if the collateral value falls below the applicable threshold.<\/li>\n<li>Depending on the terms, the borrower may need to provide additional eligible securities or take another permitted action.<\/li>\n<li>This makes monitoring important throughout the loan tenure.<\/li>\n<li>Investors should also maintain sufficient funds to meet their repayment obligations.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_should_you_avoid_pledging_unsuitable_investments\"><\/span><span style=\"color: #000080;\"><strong>Why should you avoid pledging unsuitable investments?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Not every investment is appropriate collateral. Low-liquidity securities can make it more difficult to maintain adequate collateral value.<\/li>\n<li>Investors should also avoid pledging securities that are already encumbered.<\/li>\n<li>Before applying, check:\n<ul>\n<li>Whether the shares are eligible<\/li>\n<li>What repayment obligations apply<\/li>\n<li>How the loan amount is calculated<\/li>\n<li>Whether the securities are sufficiently liquid<\/li>\n<li>What happens if the share value declines.<\/li>\n<li>Whether the shares are free from encumbrances.<\/li>\n<li>What charges apply to the facility<\/li>\n<\/ul>\n<\/li>\n<li>These checks can help investors understand the risks before pledging their investments.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_key_features_of_loan_against_shares\"><\/span><span style=\"color: #000080;\"><strong>What are the key features of loan against shares?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>A loan against shares can offer several features for eligible borrowers.<\/li>\n<li>Loan amount can range from Rs. 25,000 to Rs. 1,000 crore, subject to applicable conditions. Loan tenure can vary according to the product and customer preference.<\/li>\n<li>The application process may be available online or offline. Digital platforms can provide convenient access and account management.<\/li>\n<li>Physical branches can provide personalised assistance where required.<\/li>\n<li>Documentation requirements are generally simplified, but applicants should submit the required information promptly. Delays in documentation can affect processing.<\/li>\n<li>Bajaj Finance provides applicable digital and physical channels for Loan Against Shares applications.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_happens_if_you_do_not_repay_on_time\"><\/span><span style=\"color: #000080;\"><strong>What happens if you do not repay on time?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Timely repayment is essential because investments are being used as collateral.<\/li>\n<li>Delayed payments may result in penal charges and other applicable costs. Continued default can increase the risk of asset liquidation.<\/li>\n<li>This could result in the investor losing some pledged securities.<\/li>\n<li>Borrowers should therefore understand the repayment schedule before accepting the facility. They should also assess their ability to meet interest and other payment obligations.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Can_an_EMI_Calculator_help\"><\/span><span style=\"color: #000080;\"><strong>Can an EMI Calculator help?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>An EMI Calculator can help estimate monthly instalments based on the loan amount and tenure.<\/li>\n<li>Investors can use the calculation to assess whether the proposed borrowing fits their cash flow.<\/li>\n<li>A longer tenure may affect the total interest paid. Therefore, borrowers should consider both monthly affordability and overall borrowing costs.<\/li>\n<li>The actual repayment amount depends on the applicable interest rate, fees, and loan terms.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"The_bottom_line\"><\/span><span style=\"color: #000080;\"><strong>The bottom line<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>A loan against shares can turn eligible listed investments into a source of liquidity without requiring immediate liquidation.<\/li>\n<li>However, not every investment qualifies as collateral. Investors should focus on approved, sufficiently liquid, and unencumbered listed shares.<\/li>\n<li>Bajaj Finance offers Loan Against Shares for eligible securities, subject to applicable terms and conditions.<\/li>\n<li>Before applying, understand the loan amount, tenure, collateral requirements, fees, and repayment obligations. The loan against shares interest rate should also be assessed alongside the complete cost of borrowing.<\/li>\n<li>Most importantly, timely repayment is essential. A well-understood borrowing arrangement can provide liquidity while allowing investors to retain their long-term listed investments.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Which of your investments can be used as loan collateral? Investors may hold valuable assets but still face temporary cash requirements. A loan against shares can help eligible investors access funds without selling their listed investments. Under a Loan Against Shares facility, eligible listed shares are pledged as collateral. The investor can therefore raise funds &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[642],"tags":[1377],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11100"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=11100"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11100\/revisions"}],"predecessor-version":[{"id":11123,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11100\/revisions\/11123"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=11100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=11100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=11100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}