Loan Against Securities (LAS)
Digital, seamless & secure lending solution empowering Banks and NBFCs to offer instant loans to investors against pledge of dematerialized securities through CDSL's robust API framework.
Know MoreAbout CDSL LAS
A structured Third-Party framework enabling secure and instant Loan Against Securities
Loan Against Securities (LAS) is a secured credit facility in which a borrower obtains a loan by pledging securities such as equity shares, mutual fund units, bonds, etc., as collateral, without selling the underlying investments.
CDSL is pleased to offer its LAS API facility to Banks and NBFCs through a structured third-party framework. This initiative enables lenders to provide LAS to their customers by facilitating secure pledge creation on the CDSL platform - supported by well-defined onboarding, legal, technical and risk-mitigation processes.
Under this offering, an investor holding a demat account with any CDSL Depository Participant can avail LAS from a participating Bank/NBFC, without the need for the lender to be a CDSL-registered DP directly or through an affiliate.
18 Crore+
Demat Accounts
580+
Depository Participants
20,000+
DP Service Centers
100%
Digital Process
Benefits of LAS API
Empowering Lenders with a fully digital, secure and scalable lending platform
Fully Digital Journey
Seamless end-to-end customer experience with real-time pledge creation and loan disbursement
Broader Customer Reach
Extend LAS offering to customers holding demat accounts with any CDSL DP
Real-time Holdings Access
Access investor's share holdings in real-time with explicit investor consent
Pledge Authentication
Robust pledge creation and authentication through Depository Participants
Strong Risk Controls
Comprehensive risk mitigation and fraud prevention through 2FA and audit trails
Operational Efficiency
Higher efficiency and lower operational costs through automation
Faster Disbursal
Real-time loan disbursement through seamless API integration, subject to DP authentication
Regulatory Compliance
Complete alignment with SEBI, RBI regulations and CDSL Bye-Laws
How CDSL LAS Works
Complete Process Flow - from investor onboarding to loan disbursement
Lender Portal Login
Investor logs into NBFC/Bank portal to initiate LAS application
Provide Consent
Investor is redirected to CDSL page to authorize sharing of holdings with lender
Complete e-sign
Investor provides consent via Aadhaar-based e-sign for BO-Lender combination
Holdings Shared
Investors holdings are shared based on the PAN-BOID combination with lender
Eligibility Calculation
Based on investor holdings, the lender assesses the eligible loan amount on his portal
Select Securities
Investor selects the securities and quantity to pledge for the loan on lenders portal
Create Pledge Request
Pledge details are shared by lender, and the Investor will be redirected to CDSL page to initiate pledge request
Verify with OTP
Investor authenticates the transaction using the OTP sent to registered mobile number and email address
DP Approval
Pledge request is sent to Pledgor DP for approval
Confirmation to Lender
CDSL sends confirmation of the successful pledge to the Bank/NBFC
Loan Disbursement
Upon receiving confirmation, the Bank/NBFC disburses the loan
Frequently Asked Questions (FAQs)
Find answers to common questions about the CDSL LAS process and related services.
Loan Against Securities (LAS) is a secured loan facility under which investors can avail a loan by pledging their dematerialised securities such as equity shares, mutual fund units, bonds and other eligible securities, without selling their investments. The ownership of the securities remains with the investor while the securities are marked as pledged in favour of the lender.
Any investor holding a demat account with a CDSL Depository Participant (DP) may avail LAS from participating Banks or NBFCs that have integrated with the CDSL LAS platform, subject to the lender's eligibility criteria and approval process.
No. LAS enables investors to obtain a loan while continuing to hold their investments. The securities remain in demat account but are pledged in favour of the lender as collateral for the loan.
The LAS process typically involves the following steps:
- Apply for LAS through a participating Bank/NBFC.
- Investor provides consent for sharing holdings information.
- Investor authenticates the consent through Aadhaar-based e-sign.
- The lender assesses loan eligibility based on eligible holdings.
- Investor selects the securities and quantity to pledge.
- Investor completes pledge creation through CDSL authentication.
- The pledge request is sent to investors DP for approval.
- Upon successful pledge setup and approval, the lender may proceed with loan disbursement.
Investor consent is required to enable CDSL to share your holdings information with the selected Bank/NBFC solely for evaluating, processing and facilitating your LAS application. Holdings information is shared only after successful consent validation and authentication.
The consent is authenticated through Aadhaar-based electronic signing (e-sign). This ensures that the consent is provided by the rightful holder of the demat account.
Information related to investors demat holdings is shared with the selected lender only for the purpose of determining loan eligibility, processing the LAS application and facilitating pledge creation.
No. CDSL does not provide any loan and is not a party to the loan agreement between the investor and the lender. CDSL only facilitates secure sharing of holdings information and electronic pledge creation through its technology platform.
No. Loan approval, loan amount, applicable interest rate, repayment obligations and other lending terms are determined solely by the participating Bank/NBFC. CDSL has no role in such decisions.
The lender evaluates the investor's eligible securities, quantity held and its internal lending policies. Based on these factors, the lender determines the amount that can be sanctioned under the LAS facility.
Yes. After loan eligibility is calculated, the lender displays the eligible ISINs and quantities. Investor may select the securities and quantities to pledge.
Once the pledge request is created, it is sent electronically to investors Depository Participant (DP) for approval. After the DP approves the request, the pledge is successfully established.
As per the depository framework, pledge requests are routed to the investor's DP for verification and approval before the pledge is created in the depository system.
Yes. Ownership of the securities remains with investor. However, the pledged securities are marked in favour of the lender and may be subject to restrictions under the loan terms until they are released.
Generally, pledged securities cannot be freely transferred or sold while the pledge remains active, unless the pledge is released or appropriate action is taken as per the lender's policies and applicable regulations. Investors should contact their lender before initiating such transactions.
Upon successful repayment and closure of the loan account, the lender initiates the process for releasing the pledge over the securities, subject to its internal procedures and applicable regulations.
For queries related to:
- Loan approval
- Loan amount
- Interest rate
- Repayment schedule
- Foreclosure
- Loan closure
Please contact your respective Bank/NBFC. CDSL is not responsible for these aspects of the lending arrangement.
Get in Touch
Reach out to our team for onboarding and any queries related to CDSL LAS
Helpdesk
Neha Kavde - 022 6234 3261
Sarvesh Shrikhande - 022 6234 3241
Office Address
Marathon Futurex, A Wing, 34th Floor, Mafatlal Mills Compound, N. M. Joshi Marg, Lower Parel (E), Mumbai – 400 013