|
|
| • |
Every bank/Financial Institution/ NBFC has its individual list of approved securities (a list of companies) against which they provides a loan |
|
|
| • |
Both, resident and non-resident Indians can take a loan against the shares |
|
|
| • |
Shares must be held in the demat form |
|
|
| • |
One can get a loan only if the borrower possess shares which are as per the Lender’s list |
|
|
| • |
Every lender has a different list so if one lender does not offer the loan for your shares then you could try another lender |
|
|
|
|
| Benefits: |
|
|
|
| • |
Liquidity without selling your long term investments |
|
|
| • |
Maximize gains on existing investments |
|
|
| • |
Take advantage of investment opportunities |
|
|
|
|
| Key feature of Loan against shares are: |
|
|
|
| • |
Loan amount above Rs 10 lakh maximum no limit |
|
|
| • |
Normally 60% of the scripts pledged is available as overdraft |
|
|
| • |
There is a Minimum number of scripts and Maximum number of scripts which are accepted by lenders. Normally minimum might be 1 and maximum 20; though for a few lenders the maximum can be "no limit" |
|
|
| • |
Single script lending is available against select scripts at higher margins. Some banks have a specific list for single script portfolios. In case only one script is pledged, normally 40% of the market value is available as overdraft |
|
|
|
|
| IPO funding: |
|
|
|
This product offers an excellent opportunity to leverage customer funds in primary markets and thereby increase the allotment quantum manifold. Lenders provide loans for subscription in the IPOs of equity / equity linked instruments. |
|
|
|
| Benefits: |
|
|
|
| • |
Maximize gains on your existing funds available for investments |
|
|
| • |
Take advantage of investment opportunities |
|
|
| • |
Procure higher allotments |
|
|
|
|
| Loan against mutual fund units: |
|
|
|
Lenders provide loan against open-ended mutual fund units to High Net worth individuals, Members of Stock Exchanges, Corporates and Trusts. Customers create a lien on their existing mutual fund units and we shall provide loan after keeping the prescribed margin. |
|
|
|
| Benefits: |
|
|
|
| • |
Higher liquidity |
|
|
| • |
Leverage your existing investments |
|
|
| • |
Take advantage of investment opportunities |
|
|
|
|
| Line of credit against securities: |
|
|
|
In order to enable Customer to take care of unscheduled financing needs, Lenders provide a line of credit against marketable shares and /or mutual fund units. Customers can avail the disbursement and make the repayment as per their requirements. Interest will be calculated only for the actual number of days fund utilized. |
|
|
|
| Benefits: |
|
|
|
| • |
Liquidity without selling their long term investments |
|
|
| • |
Maximize gains on their existing investments |
|
|
| • |
Take advantage of investment opportunities |
|
|
| • |
Pay interest only for the period of actual funds utilizations |
|
|
| |
|
|
|
