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Loan Against Property v/s Loan Against Securities

By Finserv MARKETS - Apr 12,2019
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Loan Against Property v/s Loan Against Securities

There are moments in life when we are suddenly met with unexpected expenses and urgently need cash. Not everyone has enough liquid cash available at all times, as most people have investments in the form of mutual funds, shares or property. This sudden expense could be a medical emergency, education fees, marriage or even business-related expense. Under these conditions, people often resort to banks and opt for loan against investment or property.

What is the difference between LAS and LAP?

Loan against Securities (LAS)

Taken against listed securities, it can be availed by people who want fast cash against their investments and do not have liquid cash in hand. In this category of loan, your shares or mutual funds are mortgaged against the loan and is held custody by the bank in concern, until complete repayment.


Such loans are normally offered to

  • Traders

  • Industrialists

  • Business owners

Documents required

  • Passport size photograph

  • Identity proof – PAN Card, Passport, Driving License

  • Residence Proof – Electricity bill, Property tax, Phone bill etc.

  • Summary of bank account of the last 6 months

  • Original documents of the entity to be mortgaged

Features of Loan against Shares

  • The loan includes stock exchange securities (bonds etc.)

  • The security acts as protector of the loan

  • The lender can dispose the security in case lender fails to repay loan


  • Money can be easily regained if the loan defaults

  • Easy and simple transfer process

  • Market value of the share is easily accessible

  • All Debentures, bearer bonds, promissory notes and share warrants are negotiable

Loan against Property (LAP)

Simply put, the loan that you wish to acquire keeping your property as security/guarantee/mortgage. The property can be residential or commercial.


  • The borrower should be an Indian National

  • Should be at least 21 years old at the time of application

  • Should be either self-employed or working under an employer

  • Should meet the minimum income bracket set by the lender

  • Should have good credit history

Documents required

  • Identity and residence proof

  • 3 months’ salary slip/ 3 years’ IT return

  • Bank statement of the last six months

  • Cheque for processing loan fees

Features of Loan against Property

  • This type of loan is a security loan, offered only against commercial or residential property

  • Loan against property allows you to borrow up to 1 crore

  • The interest rate varies with every case

Advantages of Loan against Property

  • The nature of the loan is multi-purpose, one can borrow money for anything – education, marriage, medical requirement etc.

  • The tenure of these loans can go up to 15 years or more

  • Interest of such loans is lower than personal loans

  • After the borrower meets with eligibility criteria, it is easier to process the loan

  • Varied EMI and repayment options

Based on these points and the assets a lender owns, an individual can decide what works best for them and can go ahead and select one.

With Finserv MARKETS, applying for a loan against property online is easy, convenient and completely hassle-free. What’s more? The entire process requires minimal documentation and your loan application can be approved within just 3 minutes! So why wait? Apply for a loan against property on Finserv MARKETS, today!

Apply Now

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522