Full formBanking & Finance
LASstands forLoan Against Securities
Full Form of LAS
What is LAS?
A Loan Against Securities (LAS) is a secured credit facility offered by banks and financial institutions in India, where borrowers pledge their financial assets—such as shares, mutual funds, bonds, or fixed deposits—as collateral to obtain a loan. The loan amount typically ranges from 50% to 85% of the market value of the pledged securities, depending on the type and liquidity of the asset. LAS is widely used by investors and traders who need immediate liquidity without selling their holdings, thus allowing them to retain ownership and potential capital gains. It serves as a flexible, short-to-medium-term borrowing option with interest rates generally lower than unsecured personal loans. In India, banks like HDFC, ICICI, and SBI offer LAS products tailored for retail and high-net-worth individuals. The facility is utilized for purposes ranging from business capital to emergency expenses. For students and professionals preparing for banking or financial exams, understanding LAS is crucial as it appears in topics on secured lending, risk management, and regulatory guidelines set by the Reserve Bank of India. Proper knowledge of margin requirements, loan-to-value ratios, and liquidation procedures associated with LAS enhances comprehension of India's credit market dynamics.
LAS का फुल फॉर्म
प्रतिभूतियों के विरुद्ध ऋण
Example
To cover his daughter's wedding expenses, Ravi opted for a Loan Against Securities using his portfolio of blue-chip stocks as collateral.
LAS — frequently asked questions
What is the full form of LAS?
The full form of LAS is Loan Against Securities, a secured borrowing facility offered by banks.
What is the maximum loan amount I can get under LAS?
Typically, you can get up to 50-85% of the market value of pledged securities, as per RBI guidelines and bank policies.
Can I get a Loan Against Securities if the stocks fall in value?
Yes, but the bank may require you to pledge additional securities or repay part of the loan to maintain the required margin, failing which they may liquidate your assets.