LAS stands for Loan against Securities.
LAS Term Loan is the loan available to clients against their investments. It provides liquidity without having to liquidate investments, at times when funds are required in an urgency. The securities like Equity/Debt mutual funds, shares are pledged. At a very competitive rate, a loan is provided against the pledged securities.
NJ Capital is currently offering term loans, repayment of which will be in the form of equated monthly instalments (EMI). EMI consists of Principal plus interest and will be debited from the borrower's bank account on a fixed date every month.
Important features:
- Minimum loan amount 25,000 /-
- The interest rates shall vary from 12% p.a. to 14.00% p.a depending on the tenure of the borrowing.
Who is eligible for applying for LAS, Consumer Loans and Top up Loans?
Below client can apply for LAS Term Loan:
| Sr No | Tax Status | Mode of LAS term Loan application |
| 1 | Resident Individual | Online (E-wealth Account) |
Below clients are not eligible to apply for LAS Term Loan:
- NRI (both NRE & NRO)
- Minor (as minor's securities can not be pledged)
- PMS (Portfolio Management System) client
- Non Individual clients - Partnership Firms, HUF, Company, etc.
Note: Clients cannot club two E-Wealth accounts for a single online loan application.
What is the current interest rate for LAS Term Loan?
Please find the below the rates of interest & processing fee for LAS Term Loan:
| Sr. No | Loan Tenure (No. of Months) |
Rate of Interest (w.e.f 22-06-2020) |
| 1 | 6 | 13.50 % |
| 2 | 12 | 13.00 % |
| 3 | 18 | 12.50 % |
| 4 | 24 | 12.00 % |
| 5 | 36 | 12.00 % |
| 6 | 48 | 14.00 % |
| 7 | 60 | 14.00 % |
What are the applicable charges in LAS Term Loan? And how the charges are deducted?
he following are the charges applicable on NJ Capital LAS Term and Consumer Loan - These charges / processing fees shall be deducted from the loan amount at the time of disbursement.
| Sr. No | Particulars | Amount (Rs.) |
| 1 | Documentation Charges [First Loan] (One-time charges to recover stamp duties & other levies incurred for the transaction. Applicable for the first loan, taken at the time of execution of the agreement.) | Rs.500/- + GST |
| 2 | Documentation Charges [Subsequent Loan] (on all subsequent loans, other than the first loan, made under an existing loan agreement) | Rs.200/- + GST |
| 3 | Processing Fees (applicable on all loans aken) | 0.5% of the Loan Amount Sanctioned + GST OR Rs. 20,000/- whichever is lower |
For Consumer Loan-
| Sr. No | Particulars | Amount (Rs.) |
| 1 | Documentation Charges [First Loan] (One-time charges to recover stamp duties & other levies incurred for the transaction. Applicable for the first loan, taken at the time of execution of the agreement.) | Rs.200/- + GST |
Further, Pledging & Un-Pledging charges are Rs.15 per ISIN + GST.
How much loan do I get against different securities?
Clients can get the loan on Equity funds, Debt funds, Arbitrage funds, Liquid funds, Shares (BSE 500). Please find below details for the same.
| Equity Mutual Fund Type | Max LTV |
| Sectoral & Thematic | 25% |
| Small Cap | 35% |
| All other equity mutual funds (unless individually specified) | 50% |
| Debit Mutual Fund Type | Max LTV |
| Arbitrage Fund | 50% |
| Dynamic Bond, Gilt with 10-year fixed duration, Long Duration Fund | 65% |
| Medium duration, Medium to long duration | 70% |
| Banking & PSU Debt | 75% |
| Corporate Bond Gilt, Low duration, Short duration, Floater | 75% |
| Liquid, Money Market, Ultra Short Duration Overnight | 80% |
