Understanding Secured Loans: Home Loan, Mortgage & LAS

Secured loans are one of the most reliable borrowing options available for individuals and businesses. These loans are backed by collateral — an asset pledged to the lender to ensure repayment. Because the lender has the security of an asset, secured loans typically offer lower interest rates, higher loan amounts, and longer repayment periods compared to unsecured loans.

Among the common types of secured loans, Home Loans, Mortgage Loans, and Loan Against Securities (LAS) are widely used for different financial needs

🏡 Home Loan

A Home Loan helps you finance the purchase or construction of a residential property. With flexible repayment tenures — often up to 20–30 years — home loans make homeownership accessible for many. The interest rates are usually competitive, and borrowers can benefit from tax deductions on principal and interest payments under the Income Tax Act (as per prevailing laws). Choosing the right loan amount, tenure, and interest rate type (fixed or floating) is essential for long-term financial comfort.

🏠 Mortgage Loan (Loan Against Property)

A Mortgage Loan allows you to borrow funds by pledging your residential or commercial property as collateral. The loan amount depends on the property’s market value. Individuals often use mortgage loans for business expansion, education expenses, medical treatment, or any large financial requirement. These loans offer high loan amounts and longer repayment timelines, but defaulting may put the pledged property at risk. Therefore, careful planning and stable income flow are important before opting for this loan.

📈 Loan Against Securities (LAS)

Loan Against Securities allows borrowers to raise funds by pledging their financial investments such as shares, mutual funds, bonds, or insurance policies. The major advantage of LAS is that you retain ownership of your investments and continue to benefit from market gains, while also accessing liquidity when needed. It is commonly used by investors or professionals who want short-term funding for business or personal needs without liquidating their portfolio.

Loan limits are based on the type and market value of pledged securities. As market prices fluctuate, lenders may request additional margin if values drop significantly. Therefore, borrowers must monitor their investments closely.

Why Secured Loans Make Sense

✔ Lower interest rates
✔ Higher borrowing capacity
✔ Longer tenure options
✔ Ideal for large or urgent financial needs

Secured loans create financial leverage, helping people build assets, support businesses, or meet important life goals — while using existing assets wisely.

Standard Disclaimer

Loan approval, interest rates, and terms are subject to credit assessment, lender policies, and regulatory guidelines. Borrowers must carefully read the loan agreement, understand risks including potential loss of collateral, and seek guidance from a qualified financial advisor before proceeding. This content is for informational purposes only and should not be treated as financial advice.