Mirae Asset Financial Services has launched a fully digital Loan Against Shares (LAS) facility for CDSL demat account holders. The service allows loans from ₹25,000 to ₹1 crore at an annual interest rate of 10.25%. By integrating with CDSL, the NBFC significantly expands its reach to a major segment of India’s demat market, though investors should remain aware of market-linked collateral risks.
Mirae Asset Financial Services (MAFS), the NBFC arm of the Mirae Asset Financial Group, has launched a fully digital Loan Against Shares (LAS) facility for investors holding demat accounts with Central Depository Services Limited (CDSL). This new service allows retail investors to borrow funds ranging from ₹25,000 to ₹1 crore without needing to visit a physical branch or submit paper documents.
The lending product is designed for speed and convenience, allowing customers to pledge their shares digitally through the company’s mobile application or website. The interest rate is set at 10.25% per annum, and a key feature for borrowers is that interest is calculated only on the amount actually used, rather than the entire sanctioned limit. The company has also removed charges for prepayment or foreclosure, providing users with flexibility in how they manage their debt.
This launch is a strategic expansion for the lender. CDSL is India's largest depository and manages over 80% of the domestic demat market, with more than 18.5 crore accounts. By enabling integration with CDSL, Mirae Asset Financial Services is tapping into a much larger user base compared to its previous digital LAS service, which was limited to investors holding accounts with the National Securities Depository Limited (NSDL) since its introduction in 2022.
While the digital-first approach simplifies borrowing, investors should understand the inherent risks of a Loan Against Shares product. Because the loan is secured against equity holdings, the lender applies a loan-to-value (LTV) ratio, typically ranging from 30% to 45% based on the shares pledged. If the market value of the pledged shares drops significantly, the lender may require the investor to provide additional margin, either in the form of more shares or cash, to maintain the required LTV levels. If the investor cannot meet these margin calls, the lender may sell the pledged shares.
As a relatively young entity that began its lending operations in July 2022, Mirae Asset Financial Services has a shorter operational track record compared to some of the more established NBFCs in the space. However, the company maintains a CRISIL AA+/Stable rating for its long-term bank facilities and debt instruments, which reflects its credit profile. As the company continues to scale its loan book, its ability to manage credit risk and operational efficiency, especially during periods of high market volatility, will be important factors to track. Investors and borrowers should focus on how the company manages its loan portfolio quality and whether it can maintain competitive rates as it grows its customer base within the CDSL ecosystem.