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LAS vs Redeem Calculator
Result
Chart
Show formula & working
Borrowing = Amount × rate × months ÷ 12 + charges
Redeeming = Tax + Exit load + Growth given up, where growth given up = Units sold × ((1 + return)months/12 − 1)
Details
RBI LTV ceilings for bank loans to individuals against securities: rates and rules as of 01-Oct-2026 · Source: RBI (Commercial Banks – Credit Facilities) Directions, 2025 (updated as on 1 October 2026), Chapter XIII, section Q (paragraphs 219G–219L, effective 1 July 2026). Every figure based on it stays editable.
How this works
Selling investments for a short-term need has three costs: tax on gains, any exit load, and the growth the money would have earned. Borrowing against them costs interest and fees, but keeps them invested.
The comparison depends heavily on the return you assume. If markets fall during the period, selling early would have been the cheaper choice.
Frequently asked questions
Is borrowing always better?
No. For longer periods, or with a high loan rate, redeeming can cost less. Borrowing also exposes you to margin calls if markets fall.
Where do I find the tax figure?
Your mutual fund or broker capital-gains statement shows the gain on the units you would sell.
Talk to Rytvae
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