Frequently asked questions,
plainly answered.

Loan Against Securities is a credit facility where your mutual funds and listed stocks are used as collateral. Your investments stay in your name — we just place a digital lien on them. You continue to earn returns, dividends, and bonuses while you borrow against the value. Repay any time, and the lien is released.

Three things you keep that you'd lose by selling: compounding (your money stays invested), capital-gains tax (no realised gains, no tax event), and your investment thesis (you don't liquidate a position you still believe in). Forward Wealth gives you liquidity without unwinding any of that. The entire process is digital, with credit limit confirmed in 15 minutes and disbursal inside 2 hours.

Resident Indians between 21 and 70 years of age, with a PAN and a demat or mutual-fund holding worth at least ₹50,000. Joint account holders with 'Either or Survivor' mode are eligible. Non-residents, minors, HUF, and corporate accounts cannot apply through the digital flow today — write to [email protected] and we'll process those offline.

Yes. We don't ask for salary slips, ITR, or bank statements. Because the loan is secured by your securities, underwriting is on the collateral — not your income.

No. We don't pull your CIBIL score and a low score won't affect your eligibility. LAS is a secured product — your limit is determined by the value and category of the securities you pledge, not your credit history.

PAN, Aadhaar, an active bank account, and either net-banking credentials or debit-card details so we can set up the e-mandate for monthly interest debits. That's it — no paperwork, no in-person verification.

All eligible mutual-fund schemes across major AMCs (over 6,000 schemes), and listed stocks from our approved-scrip list. Excluded: schemes with fixed lock-ins, schemes already pledged elsewhere, and any security where redemption is restricted. The exact eligible list becomes visible inside the app after KYC.

Yes. You decide which schemes or stocks to pledge and how many units. Your limit recalculates based on the selection. We suggest pledging as much as you're comfortable with — the limit is just a facility, and you only pay interest on what you actually draw.

Interest is charged daily on the outstanding amount and debited monthly. Processing fee is a one-time slab-based charge that bundles operational cost, stamp duty, and pledge charges. Penal charges apply only if you miss your minimum due. Bounce charge is ₹1,200 per failed instrument. There is no prepayment penalty, no foreclosure charge, and no charge for non-utilisation.

A one-time charge collected when the loan account is created. It bundles three costs together: our operational cost, the stamp-duty levied by the government, and third-party pledge charges from CAMS or the depository. The exact amount is slab-based — you'll see it in the app before you sign the agreement.

It's an overdraft-style facility, not a term loan. Minimum loan ₹50,000, maximum ₹5 crore. Tenure is 3 years, renewable. Interest is between 10.5% and 16% p.a. on a reducing balance, charged only on the amount you've drawn. Loan-to-value is 80% on debt schemes and 50% on equity, hybrid, and listed stocks. Disbursal lands in your bank account within 2 hours for mutual funds and the next working day for demat securities.

Five steps, all digital. Enter your PAN to fetch your portfolio. Complete Aadhaar-linked KYC. Choose what to pledge. Sign the agreement digitally. Withdraw any amount up to your limit. Money lands in your bank in 2 hours for mutual funds, next working day for demat securities.

It's an overdraft. Interest accrues daily on the outstanding amount, never on your limit. If your limit is ₹10 lakh but your outstanding is zero, you pay zero interest. Interest is calculated monthly on the daily balance and debited from your bank on the 5th of every month via e-mandate.

Only one active loan at a time. If you need more headroom, use the in-app Top-up flow to pledge additional securities — your existing loan's limit gets enhanced (a fresh KYC and agreement are required, and a processing fee is charged on the incremental amount).

Any time, without any prepayment or foreclosure penalty. Processing fees and other charges already paid are not refunded.

Not at the moment. Interest is debited from your bank on the 5th of every month through the e-mandate you set up. Delay attracts penal charges, so keep the account funded.

From the in-app Repay flow — pay any amount, any time, via net-banking. Payments reflect on the next working day. If something doesn't reconcile, write to [email protected] and we'll trace it.

Initiate closure from the dashboard. Pay the outstanding principal, accrued interest, and any unpaid charges. Once cleared, closure completes within 5 working days and your pledged securities are released.

Use the in-app Swap flow. We replace the unit you want to sell with another security of equivalent value from your free portfolio, the lien moves over, and you can sell the original. Coverage on the loan is maintained throughout.

The default tenure is 3 years. You can close the loan any time within that — so a shorter tenure isn't useful, since it would force you to renew (and pay processing fees again) more often.

Pledge as much as you're comfortable with. Interest is charged only on what you draw, so a higher limit is a facility, not a cost. If you'd rather pledge selectively, you can — pledged units stay yours and you can swap or release them later.

Pledging is the digital act of assigning your security as collateral for the loan. You remain the beneficial owner — you continue to earn returns, dividends, and bonuses — but you can't sell or transfer the security until the lien is released. Once you repay, the lien is removed and the security is free.

We use the market value of your pledged securities (RBI requires the previous day's closing price). Maximum LTV is 80% for debt schemes and 50% for equity, hybrid, and listed stocks. A small buffer is applied below the regulatory ceiling to avoid frequent margin calls when markets move.

Yes, every time the market price of your securities moves. Unpaid interest and charges also increase your outstanding, which raises the LTV. If the LTV rises above the regulatory limit, we'll notify you and give you time to bring it back.

You get a notice and a window to fix it. Two options: pledge more securities from your free holdings to widen the base, or repay part of the loan to shrink the outstanding. If neither happens within the notice window, the lender invokes the pledge and sells enough of your securities to bring the LTV back within regulatory norms.

Talk to your CA or tax advisor for specifics. For individuals, interest on LAS is typically not tax-deductible. For business entities, the interest may qualify as a deductible expense. We don't give tax advice.