Key features of ESOP loans
00:38
Features and benefits of ESOP Financing
Bajaj Finance offers employees a loan based on the share value of their company and subscribe to Employee Stock Options (ESOPs)
-
Loan up to Rs. 175 crore
Get loan from Rs. 1 lakh to Rs. 175 crore, to exercise ESOP in your company which you can sell in the future to create wealth.
-
Interest rate up to 15% p.a.
Get loan up to 50% of the ESOP share value to buy the company equity at interest rate of 8% to 15% per annum.
-
Convenient tenures
Manage your loan easily with flexible tenure ranging from 7 days up to 36 months.
-
No hidden charges
All our fees and charges are mentioned clearly on our fees and charges section. We advise you to read them in detail before applying.
-
Wide list of partnered corporates
Choose from our wide list of approved companies and subscribe to your company ESOP. Get loan up to 50% of the share value.
-
Easy prepayments
Flexible prepayment and foreclosure options let you prepay or foreclose your loan at no additional charges. -
Minimal documentation
With only 4 documents, and your photograph, get loan to buy ESOP in your company.
-
Dedicated customer portal (My Account)
Download your loan statement and manage your loan online with our customer portal – My Account.
Pre-approved offers
We have pre-approved offers for our existing and new customers. To check, all we need is your mobile number.
Check your pre-approved offer
You might not require a loan at this time, or you might not have a pre-approved offer. There is still a vast selection of products available, which you can choose from:
-
Set up your Bajaj Pay Wallet
The 4-in-1 wallet gives you the option to transfer money or pay using UPI, EMI Network Card, Credit Card, and your digital wallet.
Download Bajaj Pay -
Check your credit health
Two most crucial factors for you are your credit health and CIBIL score. Get our Credit Health Report to know your current financial health.
Check your CIBIL Score -
Pocket Insurance to cover all your life events
We have more than 500 insurance plans that start from Rs. 199. They cover all life events, like hiking, common diseases, losing your car keys, and more.
Discover Insurance Mall -
Set up an SIP for as little as Rs. 100 per month
Select from over 1000 mutual funds from 40+ mutual fund companies, like Aditya Birla, SBI, HDFC, ICICI Prudential, and more.
Discover Investment Mall
Eligibility criteria and documents required for ESOP Financing
If your company is mentioned in our list of approved companies, and you meet the basic criteria mentioned below you are eligible for ESOP financing. Also keep a few documents as listed herein below handy while applying for ESOP financing.
Eligibility criteria
- Nationality: Indian
- Employee of partnered corporates
- Age: 18 years to 70 years
Documents**
- PAN
- Valid address proof: Aadhaar card/ passport/ voter’s ID
- Photograph
- Bank proof
- Signature image on white page
**Please note that the list of documents mentioned here is indicative. You will be notified on the complete list of documents required by our representative while filling the application form.
How to apply for ESOP financing
00:44
Step-by-step guide to apply for ESOP financing
Step 1: Click on ‘Apply’ to initiate your application.
Step 2: Enter your mobile number to Sign in and click ‘GET OTP’.
Step 3: Enter the OTP sent to your mobile number. On successful verification, you will be redirected to our online application form.
Step 4: Enter basic details like: Full name, Email ID, mobile number and city of residence.
Step 5: Under ‘Type of Security’ select ‘ESOP Financing’.
Step 6: Enter the total portfolio value of your security and click on ‘Submit’.
Once you have completed the above steps, our representative will get in touch with you for further proceedings. The final loan amount shall be calculated basis the valuation of the company and the price of the share.
Disbursement shall be done post successful verification.
-
Did you know?
You can avail loan with minimal documentation & charges
-
Did you know?
You can access your loan account online
-
Did you know?
You can get a loan up to 50% of the ESOP share value
-
Did you know?
You can manage your loan easily with flexible tenure
Applicable interest rate and processing fees for ESOP Financing
The following charges are applicable on ESOP financing:
| Types of fees | Charges applicable |
| Interest rate | 8% to 15% per annum |
| Processing fee | Up to 4.72% of the loan amount (inclusive of applicable taxes). |
| Prepayment charges | Full prepayment - Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment Part-prepayment - Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment |
| Bounce charges | Rs. 1,200/- per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
| Annual maintenance charges | Up to 1.18% (inclusive of applicable taxes) on the sanctioned amount |
| Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of 24% per annum per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Brokerage charges* | As applicable at actuals |
| DP charges** | As applicable at actuals |
| Pledge confirmation charges** | As applicable at actuals |
| Pledge invocation charges** | As applicable at actuals |
| Demat share transfer charges (post invocation)** | As applicable at actuals |
| Legal charges | Recovery of charges |
*Charges levied by Broker to BFL and the same is being passed on to the clients
**Charges levied by NSDL/ CDSL to BFL and the same is being passed on to the clients
Frequently asked questions
ESOP stands for Employee Stock Option Plan that gives the employees a benefit of ownership interest in the company. A lender funds an employee to exercise his/ her vested shares under Employee Stock Option Plan by asking to pledge those receivable shares at the time of allotment.
Any employee of the companies approved by Bajaj Finance Limited can avail of funds for ESOP.
The minimum and maximum loan amounts for ESOP finance are Rs. 1 lakh and Rs. 175 crore, respectively.
Bajaj Finance provides the loan up to 50% of the ESOP value.
The tenure for ESOP financing ranges from 7 days to 36 months.
Here are the charges to avail of ESOP financing:
- Rate of interest
- Processing fees
- Pledge/ unpledged charges
- Demat account opening charges
- AMC charges for Demat account
- Documentation charges
The employee needs to fill up the loan application form, and the new Power of Attorney (POA) based Demat account form and submit them to Bajaj Finance Limited.
- The employee has to submit their ESOP grant letter issued by the employer.
- Bajaj Finance will check/verify the documentation and open the loan account plus a POA Demat account for ESOP finance.
- The employee will have to submit a pledge form, duly signed, to Bajaj Finance Limited.
- Bajaj Finance will calculate the loan eligibility amount and inform the employee of the same.
- The employee should mention the POA Demat account number created for ESOP financing and initiate the application to exercise ESOP.
- Bajaj Finance will RTGS/issue a cheque in favour of the respective employer on behalf of the employee, based on the eligibility amount and ESOP requirement.
- The employee should inform the date of allotment of shares to Bajaj Finance.
- The employer must then allot shares into the POA Demat account of the employee, where the POA is in favour of Bajaj Finance Limited.
- Bajaj Finance will create a pledge on those shares once the shares are allotted in the POA Demat account.
Interest is calculated based on the tenure you opted for ESOP financing at the time of application. However, Bajaj Finance charges a minimum of 30 days of interest if the loan is repaid within 30 days.
Several financial institutions offer loans specifically designed for employees to exercise their ESOPs. These loans are often secured against the shares you'll acquire through the ESOP exercise.
