Loan Against Securities · Cluster · Reviewed 2026-04-25
LAS LTV Caps by Asset: Equity, Debt MF, Bonds, ULIPs
RBI Master Direction caps LAS LTV by asset class. This cluster lays out 2026 caps + lender practice for equity (50%), debt MFs (75%), bonds (75%), and ULIPs (60-70% of surrender value).
Step-by-step
- Compare lender rates side-by-side. Use the rate board to shortlist 3-4 lenders matching your profile and tenure preference.
- Run an eligibility check. Match income, CIBIL, vintage, and existing-EMI ratios against each lender's published cut-offs.
- Collect KYC + income documents. PAN, Aadhaar, salary slips (3 months) or ITR (2 years for self-employed), bank statements (6 months).
- Submit application + soft-pull. Most digital lenders use soft credit pull at the offer stage so your CIBIL is unaffected.
- Sanction letter + acceptance. Read the sanction letter carefully — focus on processing fee, foreclosure terms, and reset clauses.
- Disbursal. Funds typically credited within 24-72 hours of acceptance for unsecured products.
FAQ
Is LTV computed daily?
Yes — mark-to-market daily; margin call if breach.
What's the LTV on AAA bonds?
Up to 75% at most lenders; 70% at conservative PSU banks.
Can I get higher LTV on debt funds?
Yes — typically 75%; some lenders offer 80% for liquid funds.
Is there an LTV ceiling for ULIPs?
60-70% of surrender value; insurer's NoC required.
What about gold ETFs?
Same 75% LTV as physical gold; mark-to-market daily.
How does the LTV affect rate?
Higher LTV = higher rate. 50% LTV gets 25-50 bps cheaper than 75% LTV.
Is LTV negotiable?
Marginally — relationship customers (HNI / private banking) can sometimes get 5-10% LTV bump.
What happens during a market crash?
Margin call; if unmet, lender liquidates pledged securities to restore LTV.
Related
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