Loan Against Shares - Get Answers to All your Questions
Loan Against Securities (LAS) is a good choice when you need to raise funds in a hurry. All you need to do is pledge your shares, mutual funds, LIC policies or postal savings certificates as collateral to receive instant funds in your account.
1 ) How to get a Loan Against Shares?
You can get a Loan Against Shares in three minutes in three easy steps from HDFC Bank. The process is completely online, and you don’t need to step out of your home or office to get a loan. Here’s how you can apply for a loan against shares:
- Step 1: Login to NetBanking and select the securities you want to pledge
- Step 2: Accept the Terms of Agreement via an OTP
- Step 3: Pledge the shares and mutual funds online by confirming an OTP. You will receive funds in your LAS account instantly.
To apply for the Digital Loan Against Shares, you must have the following:
- A savings or current account and a demat account with HDFC Bank
- Equity and/ or equity mutual funds in demat form
- Mode of demat operation as single holder
- Approved scrips of Rs 2 lakhs and above
2) How much Loan Against Shares can I get?
You can get a minimum of Rs 1 lakh and up to Rs 20 lakh. The loan amount can go up to 50% of the value of the shares you hold. A flat interest rate of 9.90%. Receive the funds instantly in your account. Pay interest only on the amount utilised.
3) Who is eligible for Loan Against Securities?
An Indian resident or non-Indian resident holding approved securities can apply for a Loan Against Securities. You must be an HDFC Bank customer if you wish to complete the transaction digitally. HDFC Bank also extends the loan to proprietors, partnership firms, private limited companies and public limited companies.
4) What is the interest rate for Loan Against Securities?
HDFC Bank offers competitive interest rates for loan against securities. The interest rates are linked to the Marginal Cost of Fund-based Lending (MCLR) rate. Check with the bank for the current rate. The great thing about this loan is that it is provided as an overdraft on your account, and you need to pay interest only on the amount of funds you use and not on the amount sanctioned.
5) What documents are required for Loan Against Shares?
If you are an HDFC Bank customer, you already know that the documentation is minimal, and the process is quick and hassle-free. You must submit address, identity and income proof, besides original certificates of the securities you wish to pledge.
6) What are the securities that I can pledge to get the loan?
You can pledge a wide range of securities including equity shares, equity and debt mutual funds, National Savings Certificates, Kisan Vikas Patras, LIC and other life insurance policies, NABARD’s Bhavishya Nirman Bonds and non-convertible debentures.
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* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd