Loan Against Share for working capital
A Brief Note
The demand for working capital is closely linked to overall economic growth. In a growing economy, businesses often face multiple expansion opportunities but are unable to capitalize on them due to temporary fund shortages. To address this gap, financial institutions are introducing innovative funding models that balance high leverage with controlled risk exposure.
One such solution is loan against share funding, designed specifically for NSE and BSE listed companies operating in a restrictive lending environment. Under this model, businesses can raise working capital by pledging promoter-held shares while continuing normal business operations without disruption.
We arrange working capital funding through loan against share structures for listed companies that demonstrate strong growth potential and a clear need for enhanced working capital. The viability of the business and future cash flow prospects play a key role in justifying the funding requirement.
Although the funds are provided to the company as unsecured working capital, risk coverage is ensured through promoter share pledging and personal guarantees. This makes loan against share an effective and flexible option for companies seeking timely working capital without diluting equity or offering immovable assets as collateral.
