Wealthy Indians pledge their equity portfolios to take short-term loans instead of incurring stock losses
Last Update Date: 05-10-2026
Published by Mint
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that a missed margin call can lead to forced sale at low prices, locking in losses and hurting credit scores, and suggested borrowing only 30% to 40% of the eligible limit against liquid large-cap holdings.
More of Abhishek's views on debt and loans
The article reports that wealthy Indians increasingly borrowed against pledged shares and mutual funds instead of selling during a market fall. It covers the growth of loans against securities, typical loan-to-value ratios and interest rates, and how margin calls work when pledged holdings fall in value.
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Wealthy Indians pledge their equity portfolios to take short-term loans instead of incurring stock losses