What is 'Loan Against Shares' and how does it work?

A Loan Against Shares (LAS) is a secured loan where investors pledge shares as collateral to borrow funds from a lender. The loan amount depends on the shares' market value and applicable loan-to-value ratio. Lenders may offer up to 50% of the shares’ value, subject to limits. Shares remain invested and are released after full repayment.