{"id":20433,"date":"2025-08-11T07:32:57","date_gmt":"2025-08-11T07:32:57","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?post_type=trading&#038;p=20433"},"modified":"2025-12-18T06:23:03","modified_gmt":"2025-12-18T06:23:03","slug":"mtf-vs-loan-against-shares","status":"publish","type":"trading","link":"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/","title":{"rendered":"Key Differences Between MTF and Loan Against Shares"},"content":{"rendered":"\n<p>There are times when you need money but don&#8217;t want to sell your shares. In such a situation, investors now have two easy and smart options to have access to funds: Margin Trading Facility (MTF) and Loan Against Shares (LAS). Both allow you to pledge your shares with your broker to borrow money, without having to sell your investments. Nowadays, both these facilities are becoming increasingly popular among retail investors in India.&nbsp;<\/p>\n\n\n\n<p>In this blog, we will understand in detail what is the difference between MTF and LAS, when which option is better, along with their benefits and risks.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#What_is_a_Margin_Trading_Facility_MTF\" title=\"What is a Margin Trading Facility (MTF)?\">What is a Margin Trading Facility (MTF)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#What_is_Loan_Against_Shares_LAS\" title=\"What is Loan Against Shares (LAS)?\">What is Loan Against Shares (LAS)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#Key_Differences_Between_MTF_and_Loan_Against_Shares_LAS\" title=\"Key Differences Between MTF and Loan Against Shares (LAS)\">Key Differences Between MTF and Loan Against Shares (LAS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#When_Should_You_Use_MTF\" title=\"When Should You Use MTF?\">When Should You Use MTF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#When_is_LAS_a_Better_Option\" title=\"When is LAS a Better Option?\">When is LAS a Better Option?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#Who_is_LAS_better_for\" title=\"Who is LAS better for?\">Who is LAS better for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#Risk_Factors_to_Watch_Out_For\" title=\"Risk Factors to Watch Out For\">Risk Factors to Watch Out For<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#Pocketful_MTF_vs_LAS_Which_is_Better\" title=\"Pocketful MTF vs LAS: Which is Better?\">Pocketful MTF vs LAS: Which is Better?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-margin-trading-facility-mtf\"><span class=\"ez-toc-section\" id=\"What_is_a_Margin_Trading_Facility_MTF\"><\/span>What is a Margin Trading Facility (MTF)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-mtf\/\">Margin Trading Facility (MTF<\/a>) is a facility that allows investors to buy shares of a higher value than the total amount they have. In this, you only have to deposit a fixed margin amount, and the rest of the amount is given to you by the brokerage firm as a loan. You can also consider it as the credit card of the stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-how-does-mtf-work-in-india\">How does MTF work in India?<\/h3>\n\n\n\n<p>MTF service is being provided today by almost all the major brokers of India like <a href=\"https:\/\/www.pocketful.in\/\">Pocketful<\/a>, Zerodha, Angel One, ICICI Direct, HDFC Securities, Groww etc.When you buy a share through MTF, those shares do not come to your demat account, but remain in pledged status. That is, until your entire loan is repaid, the shares you bought through MTF remain pledged.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-how-are-shares-pledged\">How are shares pledged?<\/h3>\n\n\n\n<p>The brokerage firm pledges the shares purchased by you through the margin pledge system of <a href=\"https:\/\/www.pocketful.in\/blog\/demat\/cdsl-vs-nsdl\/\">NSDL or CDSL<\/a>. If the stock price falls and the margin is reduced, you get a margin call meaning you either have to put up more money or the brokerage can sell your shares.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-interest-rate-amp-tenure\">Interest Rate &amp; Tenure<\/h3>\n\n\n\n<p>Brokerage companies usually charge 12% to 18% annual interest on MTF. The interest charges are calculated on a daily basis. However, some new digital platforms are now offering the facility at even lower rates. For example, Pocketful platform charges only 5.99% annual interest on MTF, which is currently the lowest in the market.<\/p>\n\n\n\n<p><strong>Check Out&nbsp;<\/strong>\u2013&nbsp;<a href=\"https:\/\/www.pocketful.in\/mtf\/list\">Stocks Available for MTF<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-loan-against-shares-las\"><span class=\"ez-toc-section\" id=\"What_is_Loan_Against_Shares_LAS\"><\/span>What is Loan Against Shares (LAS)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Loan Against Shares (LAS) is a loan that you get by pledging your existing share holdings. You can think of it like a personal loan, where a bank or NBFC lends you a fixed amount based on your share value but without selling your shares.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-how-does-las-work\">How does LAS work?<\/h3>\n\n\n\n<p>When you take LAS, you have to pledge the shares in your demat account. The bank or finance company then lends a part of your total invested value (usually 50%\u201370%) as a loan. This entire process takes place under SEBI regulations and the shares remain in your name, only the bank has a lien on them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-where-is-it-used\">Where is it used?<\/h3>\n\n\n\n<p>The biggest advantage of LAS is that this loan is for completely unrestricted use, that is, you can use this amount for business, education, medical expenses, or any personal need. It cannot be used for speculative activities and margin trading.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-interest-rate-and-loan-tenure\">Interest Rate and Loan Tenure<\/h3>\n\n\n\n<p>The interest rates on LAS are usually between 9% and 12% per annum, which is lower than MTF. The loan tenure is also more flexible, sometimes it can be from 12 to 36 months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-differences-between-mtf-and-loan-against-shares-las\"><span class=\"ez-toc-section\" id=\"Key_Differences_Between_MTF_and_Loan_Against_Shares_LAS\"><\/span>Key Differences Between MTF and Loan Against Shares (LAS)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Parameter<\/th><th class=\"has-text-align-left\" data-align=\"left\">Margin Trading Facility (MTF)<\/th><th class=\"has-text-align-left\" data-align=\"left\">Loan Against Shares (LAS)<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Purpose<\/td><td class=\"has-text-align-left\" data-align=\"left\">To borrow funds for buying more stocks<\/td><td class=\"has-text-align-left\" data-align=\"left\">To get cash by pledging your existing shares<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Offered By<\/td><td class=\"has-text-align-left\" data-align=\"left\">Stock brokers<\/td><td class=\"has-text-align-left\" data-align=\"left\">Banks and NBFCs<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Tenure<\/td><td class=\"has-text-align-left\" data-align=\"left\">Short-term typically T+7 or T+30 days<\/td><td class=\"has-text-align-left\" data-align=\"left\">Long-term usually 12 to 36 months<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Interest Rate<\/td><td class=\"has-text-align-left\" data-align=\"left\">Around 12%-18% annually<\/td><td class=\"has-text-align-left\" data-align=\"left\">Around 9%-12% annually<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Pledging<\/td><td class=\"has-text-align-left\" data-align=\"left\">Shares bought via margin are pledged<\/td><td class=\"has-text-align-left\" data-align=\"left\">Pre-owned shares are pledged<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Usage of Funds<\/td><td class=\"has-text-align-left\" data-align=\"left\">Only for buying more stocks<\/td><td class=\"has-text-align-left\" data-align=\"left\">For any personal financial need<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-should-you-use-mtf\"><span class=\"ez-toc-section\" id=\"When_Should_You_Use_MTF\"><\/span>When Should You Use MTF?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Margin Trading Facility (MTF) is most useful for those investors who are active in the stock market and think of earning more profits in a short time. If you are confident about the short-term movement of a stock, and you are ready to take a little risk, then MTF can be a smart tool.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-for-which-investors-is-mtf-right\">For which investors is MTF right?<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Focus on short-term trading strategies<\/li>\n\n\n\n<li>Have a high risk tolerance<\/li>\n\n\n\n<li>Are skilled at spotting opportunities and can enter and exit trades quickly<\/li>\n<\/ul>\n\n\n\n<p><strong>Example :<\/strong> Suppose you have \u20b950,000 and you want to buy shares worth \u20b91,00,000. Through MTF, you can buy stocks up to twice your budget. If you expect a stock to rise by 10% in 5 days, then with this facility you can earn good returns even with less capital.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Use our <\/strong><a href=\"https:\/\/www.pocketful.in\/calculators\/mtf-calculator\">Margin Trading Facility Calculator<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-is-las-a-better-option\"><span class=\"ez-toc-section\" id=\"When_is_LAS_a_Better_Option\"><\/span>When is LAS a Better Option?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Loan Against Shares (LAS) is a great option for investors who want to meet some cash needs without selling their long-term share portfolio. In this, you can take a loan by pledging your existing shares and that too without touching your investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-is-las-better-for\"><span class=\"ez-toc-section\" id=\"Who_is_LAS_better_for\"><\/span>Who is LAS better for?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Long term investors who do not want to sell their shares<\/li>\n\n\n\n<li>Business owners who need funds for working capital<\/li>\n\n\n\n<li>People who need emergency funds \u2013 like medical, children\u2019s fees, or personal expenses<\/li>\n\n\n\n<li>Low-risk investors<\/li>\n<\/ul>\n\n\n\n<p><strong>Example :<\/strong> Suppose you have shares worth \u20b910 lakh in a demat account. You need \u20b93 lakh for college fees. You can take LAS from the bank by pledging these shares without selling them and without affecting long-term returns.<\/p>\n\n\n\n<p><strong>Read Also:<\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/difference-between-margin-trading-and-leverage-trading\/\"> Difference between Margin Trading and Leverage Trading<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-risk-factors-to-watch-out-for\"><span class=\"ez-toc-section\" id=\"Risk_Factors_to_Watch_Out_For\"><\/span>Risk Factors to Watch Out For<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both MTF and LAS facilities are very useful for raising funds from the stock market, but they also carry some important risks, which are important to understand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-risks-associated-with-mtf\">Risks associated with MTF:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the stock price falls, there may be a forced square-off, i.e. the brokerage can sell your shares<\/li>\n\n\n\n<li>The interest rate is high (up to 12\u201318%), which can increase the cost<\/li>\n\n\n\n<li>Dependence on short-term market movement also leads to a higher timing risk<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-risks-associated-with-las\">Risks associated with LAS:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the value of the stock falls, the bank can make a margin call<\/li>\n\n\n\n<li>If the entire portfolio is pledged in a downmarket, the loan-to-value ratio may deteriorate<\/li>\n\n\n\n<li>If the interest or loan is not repaid on time, the bank can sell your shares.<\/li>\n<\/ul>\n\n\n\n<p><strong>Read Also:<\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/best-lowest-mtf-interest-rate-brokers-in-india\/\"><strong>&nbsp;<\/strong>Lowest MTF Interest Rate Brokers in India | Top 10 MTF Trading Apps<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pocketful-mtf-vs-las-which-is-better\"><span class=\"ez-toc-section\" id=\"Pocketful_MTF_vs_LAS_Which_is_Better\"><\/span>Pocketful MTF vs LAS: Which is Better?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.pocketful.in\/mtf\">Pocketful MTF<\/a> has an interest rate of just 5.99% per annum, while Loan Against Shares (LAS) from a bank or NBFC usually attracts an interest rate of 9% to 12%. While LAS takes 2 to 5 days to process, Pocketful MTF is activated within minutes and has very limited documentation.The loan amount in LAS can be used for any requirement, while Pocketful MTF is specifically designed for share trading allowing funds to be used directly for trading, allowing for more focused investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both MTF and Loan Against Shares are effective ways to raise funds from the stock market, but their use depends on your needs and investment style. If you are active in the market and want to make quick profits, then MTF may be right for you. On the other hand, if you already have shares and want cash without selling them, then LAS will be more convenient. Before choosing any option, it is important to understand the interest rate, risk and loan terms thoroughly, so that a wise decision can be taken.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">1<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-margin-against-shares\/\">Margin Against Shares: How Does it Work?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/top-tips-for-successful-margin-trading\/\">Top Tips for Successful Margin Trading in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-margin-pledge\/\">Margin Pledge: Meaning, Risks, And Benefits<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">4<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-intraday-margin-trading\/\">What is Intraday Margin Trading?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-operating-profit-margin\/\">What is Operating Profit Margin?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">6<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/highest-leverage-broker-in-india\/\">Top 10 Highest Leverage Brokers in India \u2013 Maximize Profits with Margin Trading<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">7<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/personal-finance\/best-education-loan-in-india\/\">Best Education Loan in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">8<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/personal-finance\/best-car-loan-banks-in-india\/\">Best Car Loan Banks in India<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">What is the key difference between MTF and Loan Against Shares?<\/h3><p class=\"saswp-faq-answer-text\">MTF is only for buying shares, whereas in LAS you can take cash for any need.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Can I use Loan Against Shares to buy stocks?<\/h3><p class=\"saswp-faq-answer-text\">No, the money received from LAS cannot be used to buy shares.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What happens if share prices fall in MTF or LAS?<\/h3><p class=\"saswp-faq-answer-text\">Margin calls can come in both and shares can be sold if needed.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Who should use MTF?<\/h3><p class=\"saswp-faq-answer-text\">Traders who want to earn quick profits in the short term.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Who should prefer LAS?<\/h3><p class=\"saswp-faq-answer-text\">Long term investors who need cash without selling shares.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>There are times when you need money but don&#8217;t want to sell your shares. In such a situation, investors now have two easy and smart options to have access to funds: Margin Trading Facility (MTF) and Loan Against Shares (LAS). Both allow you to pledge your shares with your broker to borrow money, without having [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":20440,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16],"class_list":["post-20433","trading","type-trading","status-publish","format-standard","has-post-thumbnail","hentry","category-trading"],"acf":{"freelancer":"Harjyot"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MTF vs Loan Against Shares: Key Differences<\/title>\n<meta name=\"description\" content=\"Understand the key differences between Margin Trading Facility (MTF) and Loan Against Shares (LAS), their benefits, risks, and best use cases.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Key Differences Between MTF and Loan Against Shares\" \/>\n<meta property=\"og:description\" content=\"Understand the key differences between Margin Trading Facility (MTF) and Loan Against Shares (LAS), their benefits, risks, and best use cases.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/\" \/>\n<meta property=\"og:site_name\" content=\"Pocketful\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Pocketful.HQ\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-18T06:23:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2025\/08\/MTF-vs-Loan-Against-Shares.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1497\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@Pocketful_HQ\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"6 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"MTF vs Loan Against Shares: Key Differences","description":"Understand the key differences between Margin Trading Facility (MTF) and Loan Against Shares (LAS), their benefits, risks, and best use cases.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Key Differences Between MTF and Loan Against Shares","og_description":"Understand the key differences between Margin Trading Facility (MTF) and Loan Against Shares (LAS), their benefits, risks, and best use cases.","og_url":"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/","og_site_name":"Pocketful","article_publisher":"https:\/\/www.facebook.com\/Pocketful.HQ\/","article_modified_time":"2025-12-18T06:23:03+00:00","og_image":[{"width":1497,"height":1080,"url":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2025\/08\/MTF-vs-Loan-Against-Shares.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@Pocketful_HQ","twitter_misc":{"Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/","url":"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/","name":"MTF vs Loan Against Shares: Key Differences","isPartOf":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/#website"},"datePublished":"2025-08-11T07:32:57+00:00","dateModified":"2025-12-18T06:23:03+00:00","description":"Understand the key differences between Margin Trading Facility (MTF) and Loan Against Shares (LAS), their benefits, risks, and best use cases.","breadcrumb":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/wp-api.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog Home","item":"https:\/\/wp-api.pocketful.in\/blog\/"},{"@type":"ListItem","position":2,"name":"Key Differences Between MTF and Loan Against Shares"}]},{"@type":"WebSite","@id":"https:\/\/wp-api.pocketful.in\/blog\/#website","url":"https:\/\/wp-api.pocketful.in\/blog\/","name":"Pocketful blog","description":"Learn Stock market trading, investing &amp; more","publisher":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/wp-api.pocketful.in\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/wp-api.pocketful.in\/blog\/#organization","name":"Pocketful","alternateName":"Pocketful Broker","url":"https:\/\/wp-api.pocketful.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/wp-api.pocketful.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/08\/Logo_Final-01-1-3-1.png","contentUrl":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/08\/Logo_Final-01-1-3-1.png","width":150,"height":26,"caption":"Pocketful"},"image":{"@id":"https:\/\/wp-api.pocketful.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Pocketful.HQ\/","https:\/\/twitter.com\/Pocketful_HQ","https:\/\/www.linkedin.com\/company\/pocketfulofprofits\/","https:\/\/www.instagram.com\/pocketful.official\/"]}]}},"article_history_entries":[{"type":"Edit","author":{"id":7,"name":"Pocketful Team","url":"pocketful"},"content":"Post created","date":"2025-08-11 07:14:53","id":"ah_6899986db66665.50573714"},{"type":"Links","author":{"id":11,"name":"Nisha","url":"nisha"},"content":"Add MTF Calculator Link","date":"2025-09-12 09:56:24","id":"ah_68c3ee48ae9737.89506603"},{"type":"Links","author":{"id":11,"name":"Nisha","url":"nisha"},"content":"Add new link","date":"2025-12-18 06:23:03","id":"ah_69439dc7c34ae1.07535454"}],"image_url_featured":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2025\/08\/MTF-vs-Loan-Against-Shares.jpg","_links":{"self":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading\/20433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading"}],"about":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/types\/trading"}],"author":[{"embeddable":true,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/users\/10"}],"version-history":[{"count":4,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading\/20433\/revisions"}],"predecessor-version":[{"id":23589,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/trading\/20433\/revisions\/23589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/media\/20440"}],"wp:attachment":[{"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/media?parent=20433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp-api.pocketful.in\/blog\/wp-json\/wp\/v2\/categories?post=20433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}