1.An LAS is a secured loan where financial securities are pledged as collateral to the lender to borrow money.

2.Securities include equity shares, mutual funds, life insurance policies, gold deposit certificates, National Savings Certificates, Kisan Vikas Patras, etc.

3.One can avail of loan value of around 50% to 90% of the securities that are pledged as collateral.

4.It is available in the form of an overdraft facility and interest is charged on the amount.

5.An LAS is cheaper when compared to interest rates on a personal loan.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.