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Loan against Securities
Loan Against Securities (LAS) helps you meet your immediate financial needs by pledging your securities. This loan allows you to enjoy the dual advantage of retaining your investments and reaping their benefits
Check Eligibility
See if your portfolio is eligible for a LAS
Apply For Loan
Fill in a few details and we'll get in touch with you.
Open Account
We’ll open a LAS account for you.
Pledge
Pledge your securities as collateral. Click here to check the list of eligible equities, mutual funds and bonds.
Collect
Check your bank account for the credited loan amount.
BENEFITS OF LOAN AGAINST SECURITIES
- Retain the ownership of pledged investments
- Continue to receive dividends/income from investments
- Enjoy the appreciation of your portfolio/ investments
- Avail best-in-class interest rates
- Get loans starting from Rs 50,000
- Portfolio value of minimum Rs. 1,00,000
- Good CIBIL score
- Stocks to be pledged must be eligible as per the SEBI mandate
Why LAS / LAS vs OTHER LOANS
| Loan Against Securities with Sharekhan | Personal Loan | Credit Card | |
|---|---|---|---|
| Overdraft facility | Yes | No | No |
| Interest rates | 9% - 12% p.a. | >14% p.a. | >30% p.a. |
| Tenor | 1 year (renewable) | 1 year – 5 years | 1 year (renewable) |
| Pre-payment charges | Nil | 4% - 5% | Nil |
| Processing fees | 0.50% - 1% of drawing power (no hidden charges) | 2% - 5% | 2% - 5% |
| Interest calculation | Only on the amount utilised and for the period of utilization | Entire loan amount disbursed | On the amount utilized |
| Flexibility of utilization | Disbursement as per requirement | The entire loan amount has to be taken at once | Credited as per requirement |
| Approval rate | 99% | 40% | 40% |
| CIBIL score | Required | Required | Required |
| Low CIBIL score deviations | Possible | Not possible | Not possible |
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Loan Against Securities - Blogs
FAQ ON LOAN AGAINST SECURITIES
What is purpose of Loan Against Shares?
Loan Against Shares itself states that it is Loan Against Marketable Securities in which customer pledges his investments in favour of lender and borrow funds to meet his financial and personal requirement without selling his investment.
The purpose is to take care of all investment as well as personal needs and meet contingencies. It is the ideal way to get liquidity without liquidating your investments. It would make sense to avail of this facility when you are expecting a certain sum of money a few months down the line and you need some funds in the interim
I don’t have a Demat account with Sharekhan, can I still avail Loan Against Shares from Sharekhan?
Yes. You can pledge shares held with any Depository Participant in NSDL or CDSL
Can I get a loan against all the shares held by me?
Sharekhan has its approved list of scrips and it lends only against those scrips
What is the Loan to Value (LTV)?
For loan against shares or equity linked mutual funds LTV starts from 30% till 50% depending on the your requirement.
LTV for loan against debt mutual funds or bonds starts from 60% to 90% depending on the type/class of securities.
Can I foreclose my Loan Against Shares a/c?
You can choose to foreclose your loan anytime you want, after payment of interest and the principal loan amount. There are no charges for foreclosure
Can I repay my loan in part? What are the charges that would apply?
Yes, you can part prepay as much as you want during the tenor of loan without any charges
Is my overdraft limit fixed?
This will completely depend on the market rate of the securities that you have pledged. We will value your portfolio periodically to determine your overdraft limit. You can increase your overdraft limit by pledging more shares/securities, or decrease limit by de-pledging some of them that's completely up to you.
Can I release pledged shares / securities partly?
Yes, you can release the same after repaying the loan amount to the effect that the margin is maintained as per requirement.
How can I release my pledged securities?
You can initiate a release request through your DP after repaying the loan amount and interest to Sharekhan
What is the process of repaying my loan?
You need to transfer the outstanding amount in favor of "Sharekhan Financial Services Pvt. Ltd." in any one of the following bank
| BANK NAME | ACCOUNTS NO. | CMS Code - Cheque | IFSC CODE | NAME & ADDRESS OF THE BANK |
|---|---|---|---|---|
| HDFC BANK | 602740001139 | SFSL1139 | HDFC0000060 | HDFC Bank Ltd., Manekji Wadia ?Bldg.,Ground Floor,Nanik Motwani Marg,Fort,Mumbai - 400023 |
| ICICI BANK | 405066244 | SFSL244 | ICIC0000004 | Free Press House,215, Nariman Point, Mumbai - 400021 |
| AXIS BANK | 73010200012421 | SFSL421 | UTIB0000173 | Nariman Point, Mumbai - 400021 |
| KOTAK MAHINDRA BANK | 18111416530 | --------------- | KKBK0000958 | Ground Floor,mittal Court, 224, Nariman Point, Mumbai - 400021 |
| INDUSIND BANK | 200999425277 | --------------- | INDB0000033 | Ground Floor, Sonwala Building, Mumbai Samachar Marg,Fort,Mumbai - 400001 |
| YES BANK | 183000001960 | --------------- | YESB0000001 | 4th Floor, Nehru Centre Dr A.B. Road, Worli,Mumbai - 400018 |
Post you have deposited a cheque and / or transferred funds kindly send us an email on sfslcollection@sharekhanfinance.com and on las@sharekhan.com with details of your account & amount transferred/repaid, the same will be posted to client ledger.
How would I pay the interest on my Loan Against Securities account each month/quarter?
You need to transfer the interest amount in favor of "Sharekhan Financial Services Pvt. Ltd." in any one of the bank accounts mentioned in point 4.
Post you have deposited a cheque and / or transferred funds kindly send us an email on sfslcollection@sharekhanfinance.com and on support@sharekhanfinance.com with details of your account & amount transferred/repaid, the same will be posted to client ledger. You need to transfer the outstanding amount in favor of "Sharekhan Financial Services Pvt. Ltd." in any one of the following bank
Do I get statements for my account?
You can access your account statement on the portal or you can call us at 1800227500
What is the minimum loan value?
The minimum loan value is Rs. 50k.
How frequently will my portfolio be re-valued?
We do that on a daily basis and incase of a fall in the market price and a shortfall in your account, you will be informed via an email and a phone call to fulfill the shortfall either by repaying principal or by pledging more stocks as per our approved list.
Would the shares be held in my name?
Yes, shares will remain in your name. A loan against security lets you reap your regular benefits from shares such as rights, dividends and bonuses whilst you take a loan against them.