If you're in need of urgent funds, the big question is: Should you take a personal loan or leverage your investments through a Loan Against Securities (LAS)? With Vizzve Financial seeing a 34% jump in LAS applications in Q1 FY26, this comparison is more relevant than ever.
🆚 Loan Against Securities (LAS)
LAS allows you to borrow money by pledging your stocks, mutual funds, bonds, or insurance policies as collateral.
✅ Pros:
Lower interest rates (8%–11% annually)
No need to liquidate investments
Quick disbursal (same-day in most cases)
Flexible repayment (interest-only or overdraft options)
❌ Cons:
Limited to investors with eligible securities
Risk of forced liquidation if stock values fall
Not ideal for long-term borrowing needs
💳 Personal Loan
Personal loans are unsecured loans based on your income and credit score.
✅ Pros:
No collateral required
Available to salaried and self-employed
Can be used for any purpose (weddings, emergencies, home repair)
❌ Cons:
Higher interest rates (11%–22%)
Credit score plays a major role
Can affect CIBIL if repaid late
📊 Vizzve Loan Comparison Table
| Criteria | Loan Against Securities (LAS) | Personal Loan |
|---|---|---|
| Interest Rate | 8%–11% | 11%–22% |
| Processing Time | Same-day with Vizzve | 1–3 days |
| Collateral Required | Yes (Securities) | No |
| Loan Amount | Up to 70% of pledged value | ₹50,000 – ₹25 lakh |
| Prepayment Charges | Usually none | May apply |
| Risk of Asset Liquidation | Yes | No |
💡 Conclusion: Which One Is Better for You?
| You Should Choose... | If You... |
|---|---|
| Loan Against Securities | Want to borrow cheaply without selling your investments |
| Personal Loan | Need funds quickly but don’t have securities to pledge |
With Vizzve Financial, you can compare offers instantly, choose from both loan types, and get expert guidance on what suits your repayment ability and credit profile.
❓ Frequently Asked Questions (FAQ)
Q1: What is the maximum tenure for LAS?
Answer: Most LAS options offer tenures from 1 to 5 years. Vizzve offers flexible terms with overdraft-like features.
Q2: Will taking LAS affect my credit score?
Answer: No, unless you default or your pledged security is liquidated. Vizzve reports LAS data responsibly to credit bureaus.
Q3: Which is faster — LAS or personal loan?
Answer: LAS is typically faster if you hold demat securities. Vizzve processes LAS within 4–6 hours, vs 1–3 days for personal loans.
Q4: Can I apply for LAS online with Vizzve?
Answer: Yes. Vizzve’s platform allows you to pledge eligible securities, complete KYC, and get funds digitally and securely.
Q5: Are mutual funds eligible for LAS?
Answer: Yes. Equity mutual funds, debt funds, and even ULIPs can be pledged, subject to lender policies. Vizzve shows eligible instruments in-app.
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Published on July 8, 2025 • By Benny
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed