What Equity Investors Should Know About Using Loan Against Shares for Short-Term Liquidity
New Delhi [India], September 21: An investor may need cash for a business payment, medical expense or another short-term commitment while still wanting to hold shares for the long term. Selling those investments may not suit the investor’s plan or timing.In such cases, eligible shares can sometimes be pledged to borrow funds instead. Before doing so, it helps to understand how the loan amount is decided, what happens if share prices fall, and when pledged shares may be at risk.What Equity Investors Should Know about Loan against SharesA loan against shares allows eligible shares to be used as security for borrowing. It can provide funds without an immediate sale, but investors should understand valuation, costs, repayment rules, and market-linked risks.Quick...
