Loan Against
Shares
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Loan Against Shares
LAP, popularly known as Loan Against Property is a well-known type of loan among investors looking to raise instant capital. Similar to pledging property as collateral, the customers can pledge other aspects of their securities as collateral to the bank or the financial institution they are availing of a loan with.Â
Loan Against Shares or Securities (LAS) offers a similar criterion as LAP, but to bring forth an instant loan against Demat shares and equity shares without selling them. LAS, unlike LAP, lets you make the most of your share market investments without compromising a most cherished physical asset as a liaison.
When it comes to making the most of your share market investments, a loan against shares (LAS) can be a great option to consider. As discussed earlier, with this type of loan, you can borrow money using your shares as collateral, meaning that you won’t have to compromise a most cherished physical asset in order to get the funding you need. Plus, the process of securing a LAS is typically much simpler and quicker than other types of loans, making it a great option for those who need cash fast.
Additionally, the customer may avail of an overdraft facility of an undetermined value against the shares pledged. The limit value is therefore determined by the value of the share and is advanced to the customers at interest rates lower compared with personal loans.
Unique Points & Features
Speedy loan approval
Get instant approvals on loans with a loan against share facility at Loanz360. Our financial partners at Loanz360 work towards meeting your end goals in just three easy steps. We are now digitized with only minimal documentation and a hassle-free process.
Overdraft facility
The overdraft facility on the loan allows our customers to raise steady cash easily without selling those shares and losing the benefit of being a shareholder.
Easy repayment
The overdraft facility further offers customers to pay interest only on the amount used (utilized funds). The fund limit will depend on the shares pledged and is flexible.
Digital access to funds
Automated digital access to the funds will allow our users to access their funds from the comfort of their homes digitally. The customer need not commute between banks or the marketplace to access their capital, with dedicated financial experts at Loanz360 to help with the process.
Auto-renewable facility
With loans against shares, get an auto-renewal facility for the restored funds at the end of each year.
Doorstep service
Loanz360 financial partners will process your loans quickly, while our representatives will make sure your documents have reached your doorstep without you having to burn the fuel to travel in between. Contact our help desk to learn more about our facilities.
Zero prepayment charges
Zero prepayment and foreclosure charges are made possible with our partnerships. We offer you the best deals at better terms with our financial partners. You can now waive off those pesky charges and lessen the repayment burden on your shoulder.
High loan to value
The loans offered on shares can extend up to a value in crores (at some banks, NBFCs), with minimum fund access to 25,000INR. Additionally, you can now get up to 50% of the current share value with most banks or financiers at Loanz360 at lower interest rates and flexible terms.
Upto 100 % Cash BackOn Processing Fees |Overdraft Facility | Easy Repayment | Digital Access | Doorstep Services | Auto-Renew Facility
Eligibility Criteria
Note: Only the shares registered with the individual can be pledge3d. Not applicable to minors.
Age: 18 – 65 years (Conditions Apply)
Type of employment: Salaried/Self-Employed/Business Owner(Govt, Large Enterprises, Sole Proprietorship, Etc.)
Nationality: Resident of India/NRI (Conditions Apply)
Income: Monthly Minimum ~ Rs. 10,000/- and above (Salaried/Self-Employed), Minimum ~ Rs. 2,00,000/- p.a onwards (Business Owners)
CIBIL Score: Any profile(Credit score ~ 650 or above has a higher chance of getting a quick and instant loan with high funding at lower interest rates)
Employment Stability: Stable income and continual flow of money
Note: The eligibility criteria mentioned above are generic and may vary from lender to lender. Please reach out to us at Loanz360 for a personalized eligibility chart.
Documentation
Note:Â Documents requested may vary from lender to lender, contact Loanz360 for any inquiry.
Proof of Identity – Voter’s ID/Passport/PAN Card/Form 60/Driving License/Aadhaar Card
Address Proof – Voter’s ID/Passport/PAN Card/Driving License/Aadhaar Card/Electricity Bill/Ration Card/Copy of Utility Bill/Insurance Bond/Bank Statements/Income Tax Assessment Order/Property Registration documents/Pensioner Book/Property Tax Receipt/Employer Certificate
Income Proof Documents (Business Owners) – The latest copy of Income Tax Returns (ITR)/C.A certified Balance Sheet and Profit and Loss Statements along with business stability and ownership proof
Additional proofs requested: Signature proof/Bank account proof/Demat account proof
Charges & Interest Rate
Interest rates on loans against shares are availed against the shares pledged with funding up to 80% of your share value. The maximum loan amount on shares is up to 700 crores in funds with up to 50 lakhs online from Bajaj Finserv. The nature of the loan is an overdraft. This Flexi loan option offers lenders an overdraft limit to utilize funds as they wish and repay only on the funds UTILIZED.Â
Instant cash or working capital options are available to provide much-needed funding alternatives to business owners (purchases/vendors) without funds.
We are partnered with leading financiers such as SBI, Bajaj Finserv, IDBI, EFL, ICICI, Tata Capital, HDFC, Bank of Baroda, Hero Fincorp, Federal Bank, and more to bring you the best deals on your shares with low or zero fees guarantee.
Note: Contact Loanz360 to discuss options. The interest rates may vary subject to conditions.
FAQ
What is loan against shares?
LAS, loan against shares, is the perfect way to make the most of your share market investments without compromising a most cherished physical asset. By using your shares as collateral, you can secure a loan against their value and enjoy the benefits of both worlds. With LAS, you can keep your shares while still reaping the rewards of a loan. It’s the best of both worlds.
What is loan against demat shares?
A loan against Demat shares and equity shares is a type of loan where the borrower uses their dematerialized shares as collateral. This type of loan is usually given by financial institutions to investors who wish to leverage their portfolios. The loan amount is generally a percentage of the value of the shares pledged.
What shares are not accepted by lenders?
Scrips in the name of minors, lock-in shares, physical shares, and partly paid-up shares are not accepted by financial institutions or lenders.
What are margin loans in loan against shares?
A margin loan is a loan that is secured by shares as collateral. The main benefit of a margin loan is that it allows the borrower to leverage their shares to obtain a larger loan amount than they would otherwise be able to access. However, the downside is that if the value of the shares falls, the borrower may be required to provide additional collateral or even repay the loan in full.
What type is loan against equity shares?
Loan against equity shares is another popular type of loan involving a home equity line of credit (HELOC). With a HELOC, you can borrow a loan against equity shares in your home, using your home as collateral.
Do my shares change in value?
Your shares can fluctuate in value, which means that the value of your collateral can also go up and down. If the value of your shares falls and you are unable to repay the loan, you could lose your shares. Before taking out a loan against your shares, it is important to speak to a financial advisor to make sure that it is the right decision for you.
What is the nature of the loan against shares?
A loan against shares/LAS is an overdraft facility with the customers allowed to pay interest only on the amount utilized than the entire overdraft limit sanctioned on the loan.
What is a share collateral loan?
A share collateral loan is another type of loan against shares that is secured by shares. The main benefit of this type of loan is that it typically offers a lower interest rate than other types of loans. This is because the shares act as collateral for the loan, which reduces the risk for the lender. Another benefit of this type of loan is that it can be used to purchase shares that are not yet listed on the stock exchange. This can be a great way to invest in a company that is not yet public.
Who can benefit from a share collateral loan?
This type of loan can be a great option for borrowers who may not qualify for a traditional loan.
What is the loan tenure on loans against shares?
The repayment tenure for loans against shares is typically 12 months and can be auto-renewed based on the performance of the account. The customer however may close the account upon request if he wishes to do so before renewal.
How many scrips can I pledge at once?
10 scrips can be pledged in total at once but may vary from lender to lender depending on their policy.
Can I sell my pledged shares?
Yes. However, the lender or the bank will adjust the proceeds with the sale of your pledged share and credit the outstanding balance amount to your LAS account.
What is the interest rate on loan against shares?
The interest rates may vary from bank to bank. However, the interest rate on loans against shares is lower than on personal loans and may start from anywhere between 9% to 10% depending on the existing market conditions.
How often are the shares revalued?
Most banks revalue shares each week or with a significant fluctuation in the existing market conditions.
Do I need a guarantor to avail of loan against shares?
No. You do not need any additional security or guarantor on a loan against shares.
What are the conditions applied by a lender on a loan against shares?
Most banks or lenders ask for savings, Demat, and current accounts with their bank. Additionally, some banks ask for an approved minimum value of shares specified by them. However, with Loanz360, you can discuss your end goals and requirements with our representatives to get a personalized quote on your loan with a desirable lender willing to work with your needs.
