Short answer: Under RBI’s 2026 rules for banks, you can borrow up to 60% of the value of listed shares, and up to ₹1 crore in total against shares and equity fund units across the banking system. Interest is usually charged only on what you draw, but if share prices fall you may have to repay or pledge more within days.
Last updated: 12 October 2026. General information, not financial advice. Your lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms.
Loan against securities calculator (bank LTV limits)
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RBI’s LTV limits for banks
| Security pledged | Maximum LTV (banks) |
|---|---|
| Listed shares, listed convertible debt | 60% |
| Equity and hybrid mutual funds, ETFs, REIT and InvIT units | 75% |
| Debt mutual funds | 85% |
| Listed debt securities rated AAA | 85% |
| Listed debt rated AA to BBB | 75% |
| Government securities | Bank’s own policy |
| Sovereign Gold Bonds | Gold loan rules apply |
- Loans against shares and equity fund units are capped at ₹1 crore per individual across the banking system; within that, up to ₹25 lakh can be used to buy shares in the secondary market.
- IPO, FPO and ESOP financing is capped at ₹25 lakh per individual, with at least a 25% cash margin.
- Securities are valued at the lower of the six-month average price or NAV and the previous day’s price or NAV.
- If the LTV is breached, it must be fixed within 7 working days: you repay part of the loan or pledge more.
These are RBI’s limits for commercial banks, in force from 2026. NBFCs follow RBI’s separate rules for NBFCs and may offer different limits; check the lender’s KFS.
How a margin call works
Suppose you pledge shares worth ₹10 lakh and draw the maximum ₹6 lakh (60%). If the shares fall 20% to ₹8 lakh, the allowed limit becomes ₹4.8 lakh, so you are ₹1.2 lakh over. You must repay that or pledge more within 7 working days, or the lender can sell pledged shares.
Loan against shares vs other options
| Loan against shares | Personal loan | Selling shares | |
|---|---|---|---|
| Rate | Usually lower | Higher | No interest |
| Keep your investment | Yes | Yes | No |
| Main risk | Margin calls if prices fall | Higher cost, credit-score impact | Capital gains tax; you lose future gains |
Secured loan calculators: Gold loan · Loan against shares · Loan against mutual funds · Loan glossary
Frequently asked questions
How much loan can I get against ₹10 lakh of shares?
Up to ₹6 lakh from a bank at the 60% LTV, subject to the lender’s own list of approved shares and its policy.
Is there a limit on loans against shares?
Yes. Banks can lend up to ₹1 crore per individual against shares and equity fund units across the banking system.
Do NBFCs follow the same limits?
Not necessarily. NBFCs follow RBI’s NBFC rules and their own policies. Compare the LTV, rate and margin-call terms in the KFS.
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Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.