Loan Against Securities
The investments you’ve made for your future can also help you make the most of your present, with Loan against securities.
No matter what the market conditions, loans against shares and other securities enable you to make the most of your investments without having to sell them. Whether you want to make a long term investment in the capital market or need funds for personal reason like the purchase or renovation of a home, purchase of a vehicle, travel or children’s education, your security will help you live a bigger life, no matter how bad the time is.
Features and Benefits:
- Maximum exposure / leverage on your existing investments for all your needs
- Loan to take care of your business and personal requirements
- Hassle free documentation
- Loan with easy renewal facility
- Only interest servicing on the amount utilized
- Dividends and other benefits accrue to the customer
- Leveraging available Investments for further Investments/meeting expenses...
- If there is an appreciation in the value of the securities placed as margin, the client would be eligible for an enhancement in drawing power.
- Provides instant liquidity without having to sell your securities.
Eligibility:
- Minimum age of 21 yrs for individual
- Business Continuity
- Only on shares held in demat form
- Only for approved locations
- Approved Bank account for disbursement and repayment
- All type of borrowers whether Individual, Firm or Pvt. Limited Company
FAQs:
What is Loan against Securities?
LAS (Loan against Securities) refers to loan availed by pledging/assigning the liquid securities (Shares, Bonds, Life Insurance Policies etc.) held by an individual/firm. This facility gives the customer immediate liquidity without having to sell the securities.
Who can avail Loan against Shares?
Loan against Shares facility is available for Individuals (Salaried &Self Employed), Partnership Firm &Private Limited Companies. This facility is not available for NRI’s and Minors.
What security/collateral does a borrower need to provide?
No additional security/collateral need to be provided, apart from the securities against which the loan is granted.
How much margin has to be maintained?
Minimum 40% of Market Value varying on Security Pledged. However this ratio changes depending on the bank which offers the product.
What is the tenure of the loan?
Generally the tenure for LAS loan is 12 months renewable as per terms and conditions.
What are the purposes for which Loan against Shares be availed?
Long Term Investment in Capital Market
Purchase/Renovation of House
Purchase of Vehicle
Travel/Holiday Wedding/Education
Any other acceptable requirement
Can I do a prepayment of Loan against Securities facility?
Customer can close any tranche in part or in full. Interest would be charged pro rata for the outstanding amount There are no charges for closure of the tranche availed After the loan has been repaid, the pledgor will submit an instruction to its DP to initiate the closure of pledge. There are no charges on prepayment of loan.
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