Work out loan against shares instantly with clear inputs, formula shown and shareable results.
Lending against shares is an overdraft secured on a pledged portfolio. Because prices move daily, the lender sets a conservative advance rate and calls for margin once the loan-to-value breaches a trigger, which is the risk to size before drawing.
Margin headroom
Loan = value × LTV; Call value = loan / trigger LTV; Cushion = 1 - call value / value
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
You must pledge more securities or repay part of the loan, failing which the lender can sell the pledged shares.
These facilities usually work as an overdraft, so interest applies to the amount actually used rather than the sanctioned limit.