New Delhi, July 8 -- The choice between a loan against securities (LAS) and a personal loan is rapidly gaining traction nationwide. This is happening as aspirational borrowers are seeking the best fit for their financial needs. Experts emphasise the significance of understanding both cost and associated risks before making a borrowing decision.

Elucidating on the same, Animesh Hardia, Senior Vice President, Quantitative Research at 1 Finance, says: "While both types of loans have high borrowing costs and should generally be avoided, in the event of an emergency, a personal loan (with an interest rate of less than 12-14%) should be favoured over a loan against securities. Loans against securities must maintain an LTV of approximately 50%....