Terms and Conditions for Loan Against Securities (LAS)

Please read these terms and conditions carefully before using the LAS service provided by InvestMates in partnership with Abhi Loans.

Introduction

These Terms and Conditions ("Terms") govern the Loan Against Securities (LAS) service offered by InvestMates, a wealth management app that helps you manage your investments and finances. By using the LAS service, you agree to be bound by these Terms and the Privacy Policy of InvestMates.

The LAS service allows you to borrow money from Abhi Loans, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI), by pledging your investment securities as collateral. The LAS service is provided by Abhi Loans in partnership with InvestMates, and the loan agreement is between you and Abhi Loans. InvestMates is not an NBFC and does not provide the loan or any guarantee for the loan.

Loan Application and Approval

To apply for the LAS service, you need to:

  • Login to your InvestMates account and select the LAS option
  • Choose the securities that you want to pledge from your demat account
  • Enter the loan amount that you want to borrow, subject to the maximum limit allowed by Abhi Loans based on the value and margin of your securities
  • Review and accept the loan offer, interest rate, tenure, and other terms and conditions of Abhi Loans
  • Authorize InvestMates to create a lien on your securities in favor of Abhi Loans and share your personal and financial information with Abhi Loans for verification and processing of the loan
  • Sign the loan agreement with Abhi Loans electronically

Abhi Loans will review your loan application and verify your information. Abhi Loans reserves the right to approve or reject your loan application at its sole discretion. Abhi Loans will inform you of the status of your loan application through InvestMates or any other communication channel.

If your loan application is approved, Abhi Loans will disburse the loan amount to your bank account linked with InvestMates within 24 hours. You will receive a confirmation message from InvestMates and Abhi Loans.

Loan Repayment and Closure

You are responsible for repaying the loan amount along with the interest and any other charges as per the loan agreement with Abhi Loans. You can repay the loan through InvestMates or any other mode specified by Abhi Loans. You will receive periodic statements from Abhi Loans showing your loan balance, interest due, and repayment schedule.

You can prepay or close the loan at any time without any penalty, subject to the minimum holding period of the loan as per the loan agreement with Abhi Loans. You can request for loan closure through InvestMates or any other mode specified by Abhi Loans. You will have to pay the outstanding loan amount along with the interest and any other charges as per the loan agreement with Abhi Loans.

Once the loan is closed, Abhi Loans will release the lien on your securities and transfer them back to your demat account. You will receive a confirmation message from InvestMates and Abhi Loans.

Loan Default and Enforcement

You are liable for any default or delay in repayment of the loan amount, interest, or any other charges as per the loan agreement with Abhi Loans. In case of any default or breach of the loan agreement, Abhi Loans may take any or all of the following actions:

  • Report your default to the credit bureaus and affect your credit score
  • Invoke the lien on your securities and sell them in the market to recover the loan amount, interest, and any other charges as per the loan agreement with Abhi Loans

You will be liable for any shortfall or excess arising from the sale of your securities by Abhi Loans. You will also be liable for any costs and expenses incurred by Abhi Loans in enforcing the loan agreement.

Risks and Responsibilities

You acknowledge and agree that:

  • The LAS service is subject to market risks and fluctuations in the value of your securities. You are solely responsible for monitoring the value and margin of your securities and maintaining the required loan-to-value (LTV) ratio as per the loan agreement with Abhi Loans. You may have to pledge additional securities or repay part of the loan amount to maintain the required LTV ratio.
  • The LAS service is subject to regulatory and legal risks and changes in the laws and regulations governing the securities market, NBFCs, and lending activities. You are solely responsible for complying with the applicable laws and regulations and bearing the consequences of any non-compliance or violation.
  • The LAS service is subject to operational and technical risks and disruptions in the functioning of InvestMates, Abhi Loans, or any other third-party service provider involved in the LAS service. You are solely responsible for ensuring the security and confidentiality of your InvestMates account, login credentials, and personal and financial information. You are solely responsible for reporting any unauthorized or fraudulent activity on your InvestMates account or LAS service to InvestMates and Abhi Loans immediately.

Disclaimer and Limitation of Liability

InvestMates does not provide any warranty or guarantee for the LAS service or the loan provided by Abhi Loans. InvestMates does not endorse or recommend the LAS service or Abhi Loans and does not assume any responsibility or liability for the LAS service or the loan provided by Abhi Loans. InvestMates does not provide any advice or guidance on the suitability, profitability, or riskiness of the LAS service or the loan provided by Abhi Loans. You are solely responsible for making your own independent judgment and decision regarding the LAS service or the loan provided by Abhi Loans.

InvestMates shall not be liable for any direct, indirect, incidental, consequential, or punitive damages arising from or related to the LAS service or the loan provided by Abhi Loans, including but not limited to the loss of profits, loss of data, loss of goodwill, or loss of opportunity.

Changes and Termination

InvestMates reserves the right to change, modify, suspend, or terminate the LAS service or these Terms at any time without prior notice. You are advised to review these Terms periodically for any updates or changes. Your continued use of the LAS service after any changes or modifications to these Terms constitutes your acceptance of the revised Terms.

InvestMates reserves the right to terminate your access to the LAS service or your InvestMates account at any time without prior notice. You may also terminate your access to the LAS service or your InvestMates account at any time by contacting InvestMates. However, such termination will not affect your obligations and liabilities under the loan agreement with Abhi Loans.

Questions about these Terms?

If you have any questions or concerns about these Terms and Conditions, please contact our support team.

Last updated: 4/23/2026