<\/span><\/h2>\n\n\n\nReality<\/strong>: You can indeed borrow against a wide range of market-linked investments. Your stock portfolio isn\u2019t just a growth asset \u2013 it\u2019s also a potential source of immediate liquidity. Most listed stocks, equity mutual funds and ETFs can serve as collateral for loans, allowing you to access funds without disrupting your long-term investment strategy.
This option provides dual benefits: you retain ownership of your investments (continuing to earn dividends and benefit from potential market appreciation) while simultaneously accessing funds for immediate needs.<\/p>\n\n\n\n<\/span>Myth 2: LAS is only for high-net-worth individuals<\/span><\/h2>\n\n\n\nReality:<\/strong> LAS is accessible to investors across the spectrum. As long as you hold quality stocks in your portfolio, you can apply for LAS regardless of your net worth.<\/p>\n\n\n\nWith minimal portfolio requirements, this financial tool is available to all investors who need liquidity without liquidating their investments.<\/p>\n\n\n\n
<\/span>Myth 3: LAS is too risky; you\u2019ll lose your stocks<\/strong><\/span><\/h2>\n\n\n\nReality:<\/strong> The risk of losing your stocks exists only if you fail to manage your loan properly. With responsible borrowing and timely repayments, your portfolio remains secure.<\/p>\n\n\n\nFinancial institutions implement safeguards like maintaining a margin, which creates a buffer against market fluctuations. As long as you stay within your borrowing capacity and manage your repayments well, your investments remain safe. Moreover, even in cases of market volatility, you\u2019ll receive thorough notifications and margin calls well in advance, giving you multiple opportunities to add funds or take corrective action before any liquidation occurs. The process is transparent, with clear communication at every step to ensure you\u2019re always informed about your loan status.<\/p>\n\n\n\n
<\/span>Myth 4: The interest rates on LAS are very high<\/strong><\/span><\/h2>\n\n\n\nReality:<\/strong> LAS is actually one of the most cost-effective borrowing options available to investors. Since your loan is secured by your stocks, the lender\u2019s risk is lower, resulting in more favourable interest rates compared to unsecured loans.<\/p>\n\n\n\nOn Tickertape, you can access a loan against your stocks at just 10.4% to 10.9% per annum \u2013 significantly lower than personal loans or credit card interest rates, which can range from 14% to 36%. This makes LAS an attractive option for short to medium-term financing needs.<\/p>\n\n\n\n
<\/span>Myth 5: You must repay the loan in one lump sum<\/strong><\/span><\/h2>\n\n\n\nReality:<\/strong> LAS offerings provide remarkable flexibility in repayment options. Depending on your financial situation, you can choose to:<\/p>\n\n\n\n