Need cash but don’t want to sell stocks? Here’s a way, explained in 10 points
AI Summary
Retail investors should be cautious when considering loans against shares, as the fluctuating share prices can significantly impact borrowing capacity and associated penalties. Understanding the terms of the pledge agreement is crucial, as it can often carry high default penalties that may outweigh the benefits of securing a loan. In the current market environment, where volatility is prevalent, investors must carefully assess their risk tolerance and investment horizon before opting for such financial products.
Because share prices move, it's worth remembering that the amount you can borrow against them can shift too, not just at the start but through the life of the loan.
Reading the terms of the pledge is very important. More often than not these types of loan against shares carries high default penalties being imposed.
Original Article
Published on Times of India
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This is a market news update from Times of India, published on 03 October 2026.
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