LAS, also known as Loan Against Shares or securities, is a type of loan that is secured by shares or securities. In the Indian banking system, it is always important to have security to raise funds. The higher the security, the better the possibility of getting a loan, though business cash flow is also an important consideration.
When it comes to security, financial institutions will consider security which includes – Fixed assets, Gold, bonds, Shares, Mutual Funds, Fixed deposits etc. Under LAS, Financial Institutions consider Bonds, Shares, and Mutual Funds as security to arrange debt funding security.