Loan Against Securities vs. Loan Against Assets vs. Personal Loan: Which One Should You Choose?

 In today’s fast-paced financial world, the need for quick liquidity can arise anytime — whether it's for funding a business, a personal emergency, or buying a new property. But with so many loan options available, one question looms large:

Should you opt for a Personal Loan, a Loan Against Assets, or a Loan Against Securities?

Let’s decode the pros, cons, and ideal use cases for each loan type so you can make a smart, financially sound decision.

 

💡 What Are Your Loan Options?

🔹 1. Personal Loan – Quick Cash, No Questions Asked

A personal loan is an unsecured loan. That means you don’t have to pledge anything. It’s based purely on your income, credit score, and repayment capacity.

Highlights:

·         No collateral required

·         Instant disbursal (within 24–72 hours)

·         Interest: 10.5% to 24%

·         Tenure: 1 to 5 years

·         EMI-based repayment

Ideal For:

·         Urgent needs (medical bills, weddings, vacations)

·         Those without any assets

·         Quick funding without paperwork hassles

✅ Best When: You need money urgently and have a good credit history.

 

🔹 2. Loan Against Assets – Put Your Property or Gold to Work

Got real estate, gold, or fixed deposits lying idle? You can unlock their value with a Loan Against Assets.

Common Types:

·         Loan Against Property (LAP) – pledge your residential or commercial property.

·         Gold Loan – use your gold jewellery as collateral.

·         Loan Against FDR – leverage your fixed deposits.

Highlights:

·         Secured loan with lower interest (8%–12%)

·         Higher loan amount possible

·         Longer tenures (up to 15 years for property)

·         Tax benefits (in some cases)

Ideal For:

·         Business expansion

·         Big-ticket personal expenses (education abroad, buying property)

·         Anyone with valuable physical assets

✅ Best When: You need a large loan at a low interest rate and don’t mind pledging assets.

 

🔹 3. Loan Against Securities (LAS) – Don’t Sell Your Investments, Borrow Against Them

If you have a strong portfolio — shares, mutual funds, bonds, or insurance — you can take a Loan Against Securities.

Highlights:

·         Interest rates as low as 8%

·         Overdraft facility available

·         Pledge shares or mutual funds without selling them

·         Fast processing (2–5 days)

Ideal For:

·         Managing temporary cash crunch

·         Short-term business needs

·         Investors who don’t want to liquidate their holdings

✅ Best When: You want liquidity without disturbing your investment portfolio.

 

🧾 Quick Comparison Table

Feature	Personal Loan	Loan Against Assets	Loan Against Securities
Collateral Required	❌ None	✅ Property/Gold/FDR	✅ Shares/Mutual Funds
Interest Rate	🔺 High (10.5%–24%)	🔻 Low (8.5%–12%)	🔻 Low (10.10%–12%)
Loan Tenure	1–5 years	Up to 15 years (property)	Up to 3 years
Processing Time	Fast (1–3 days)	Medium (3–15 days)	Fast (2–5 days)
Loan Amount	Based on income	Based on asset value	50%–80% of security value
Documentation	Minimal	Moderate	Light to Moderate
Risk Involved	High (Unsecured)	Medium (Asset Seizure Risk)	Medium (Market-linked)

 

🧠 Which Loan Should You Pick?

Here’s a simple guide based on your situation:

🔹 You have no assets, need money fast:

Go for a Personal Loan.

🔹 You need a big loan and own property/gold:

Loan Against Assets gives you better interest rates and longer repayment.

🔹 You have mutual funds or stocks and don’t want to sell:

A Loan Against Securities gives liquidity without disrupting your investments.

 

📌 Pro Tips Before You Apply

·         Always compare interest rates and processing fees.

·         Calculate your EMI and total cost of the loan.

·         Don’t borrow more than you can repay.

·         Secured loans are cheaper — use them when possible.

 

🔚 Final Words

Whether you’re managing a sudden expense or planning a major investment, the right loan can empower your journey. But not all loans are created equal — and neither are your needs.

The golden rule? Secure loans (with collateral) are cheaper and safer — but unsecured loans (like personal loans) offer speed and flexibility.

If you have assets, secured loans (LAS or LAP) are cheaper and more flexible.
Always compare interest rates, processing fees, and loan tenures before making a decision.

Choose wisely. Compare patiently. And borrow responsibly.

 

🤝 Need Help Getting the Right Loan at the Best Rate?

If you're considering a Loan Against Securities, Loan Against Assets, or a Personal Loan, we can help you secure it at competitive interest rates, customized to your profile and asset value.

📍 Visit Us

Maxgrow Professionals LLP
21/32, 1 Mahatma Gandhi Marg, Hazratganj, Lucknow

📧 Email: maxgrowprofessionalsllp@gmail.com

📞 Phone: 9250405052

💼 Let us help you find the smartest financial solution for your needs — efficiently and affordably.