{"id":10028,"date":"2026-06-21T20:14:06","date_gmt":"2026-06-21T14:44:06","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=10028"},"modified":"2026-06-21T20:14:14","modified_gmt":"2026-06-21T14:44:14","slug":"loan-against-securities-vs-personal-loan-which-offers-lower-interest-rates-and-higher-credit-limits","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/loan-against-securities-vs-personal-loan-which-offers-lower-interest-rates-and-higher-credit-limits\/","title":{"rendered":"Loan Against Securities vs Personal Loan: Which Offers Lower Interest Rates and Higher Credit Limits?"},"content":{"rendered":"\n
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Synopsis:<\/strong> Investors who need funds think about getting a personal loan, however If they have <\/em>stocks, mutual funds, bonds or ETFs<\/em><\/strong> they can get a <\/em>Loan Against Securities (LAS)<\/em><\/strong>. This loan usually has lower interest rates and higher loan eligibility than an unsecured personal loan.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Loan Against Securities lets you borrow money by using your existing investments as collateral, you can pledge shares, mutual funds, bonds, ETFs or insurance policies<\/strong>. For instance lets say you have funds worth \u20b910 lakh <\/strong>and you need \u20b95 lakh<\/strong> for a short-term expense. You can use your funds to secure a loan, this way you can avoid selling your investments and still get the cash you need. The lender decides how much you can borrow based on your securities, loan against securities often have lower interest rates.<\/p>

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Personal loans are unsecured loans that you can borrow without giving anything as a guarantee. Banks and other lenders approve these loans based on how much you earn your credit score and how long you have been working and how well you can pay back. For example if you need five lakh rupees<\/strong> for an emergency, to renovate your home, for a wedding or to pay off other debts<\/strong> you can apply for a personal loan and get the money. You do not have to give your investments, like funds or shares as a guarantee<\/strong>. Once you get the loan you pay it back in amounts every month for a certain period.<\/p>\n\n\n\n

LAS vs Personal Loan: Key Differences<\/strong><\/h2>\n\n\n
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Which Option Offers Lower Interest Rates?<\/strong><\/h2>\n\n\n\n

Loan Against Securities (LAS) generally has a lower interest rate than personal loans because it is backed by your investments. The lender has your investments as collateral, which makes the loan low risk and that is why they provide lower interest rates. On the other hand personal loans are not secured that is why the interest for them is higher.<\/p>