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Loan Against Shares
Loan Against Shares

Loan Against Shares

Loan Against Shares

This loan offers an opportunity to monetise your investments to raise capital for your personal /business financing needs. You don't have to provide any additional security or collateral except the securities you are pledging!

  • Features & Benefits
  • How to apply ?
  • Documents Required
  • Terms and Conditions
  • Interest Rates & Service Charges
  • Speedy Loan Approval
  • Loans can be availed against shares held with any Depository Participant in India
  • Get a loan worth up to 50% of the value of the security pledged, with the minimum loan amount of Rs.1 lakhs and maximum loan amount of Rs.20 lakhs.
  • A maximum loan amount of 3 lakhs can be availed against a single scrip/sector/company.
  • Minimal Paperwork 
  • Centralised operation 
  • The interest is calculated only on the amount of the loan actually used by you.
Who can apply?
 
  • Resident Individuals, having Demat account with any DP(Depository Participant) in India 
  • Non- Resident Individuals, having NRO Demat account with any DP(Depository Participant) in India
 
How to Avail loan?
  • If you are having Demat account with federal bank, you can visit any of our branches for applying the loan.   
  • If you are having Demat account outside federal bank, you have to collect the Pledge Master Report from the Depository Participant where you are having the demat account and should submit the same to the Federal Bank Branch. 
 
1. Proof of identity (Aadhar card/Passport/PAN card/Voter's ID/Driving License)
2. Recent Passport size photograph
3. Address Proof(Aadhar card/Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)
 
  • If you are an existing customer, demat account holding statement required.
  • If you are a new customer, following documents are required:
Margin
  • Minimum Margin Prescribed is 50% of the market value of shares.
Loan Period
  • The loan can be given only as overdraft for a period of 12 months, which can be renewed thereafter subject to satisfactory conduct of the account.
Security
  • Pledge of the demat shares against which loan is sanctioned.
  • Securities should be in the name of eligible borrowers (securities in the name of minors, Trusts, partly paid up or shares in the name of individuals in companies of which they are Directors/ Promoters cannot be accepted).
  • Contribution of single scrip should not exceed 50% of the portfolio value at any point of time during the tenure of the account. 
  • No lending will be done against:
1. Partly paid up shares
2. Physical shares
3. Lock in shares
4. Scrips in name of minor.
5. Shares of Federal Bank
 

 

Processing fees

  • 0.25% of the loan amount or Rs.1000 whichever is higher, plus applicable taxes.
  • If shares from outside DP are accepted 0.25% of loan amount or Rs.1500 whichever is higher, plus applicable taxes

 

Pledge charges

  • Pledge creation   if Demat account with Federal Bank DP - Rs.75 per transaction (per ISIN)
  • Pledge confirmation - if Demat account outside Federal Bank DP – Rs.75 per transaction (per ISIN)