Neutral impactStocks
Need cash but don’t want to sell stocks? Here’s a way, explained in 10 points
Times of India 1 hr ago·3 Oct 2026, 9:11 am
Investors can now unlock the cash tied up in their demat accounts without selling their shares. This process, known as a margin loan or pledging, allows you to borrow money by using your existing holdings as collateral. The amount you can borrow depends on the value and type of securities you pledge, such as stocks or mutual funds. It is a way to access liquidity while keeping your investment portfolio intact.
This option matters to investors who need funds for emergencies or other opportunities but want to avoid locking in capital gains or disrupting their long-term strategy. However, it is not without risk. If the value of your pledged shares falls significantly, you may face a margin call, requiring you to add more funds or sell assets to maintain the loan. Understanding the interest rates and terms is essential before committing.
Watch out for the specific eligibility criteria of your broker and the market volatility of your pledged stocks. Always ensure you have a plan to cover the loan if the market moves against you. Review the agreement carefully to understand the repayment schedule and any penalties for default. This strategy works best for investors who are confident in their ability to manage the associated risks.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
