A Loan Against Shares (LAS) can be a valuable tool in financial planning. It allows you to access funds without selling your shares, which is useful if you believe the share price will increase in the future. LAS often comes with lower interest rates compared to personal loans or credit cards since the shares act as collateral, reducing the risk for the lender. Additionally, the interest paid on LAS is often tax-deductible, making it a tax-efficient way to access funds. By using LAS, you can maintain your investment position in the stock market while meeting your financial needs, which can be particularly beneficial during market upswings. LAS typically offers flexible repayment options, allowing you to tailor the loan to your financial situation and cash flow.
