Please Note: ESOP Funding provides employees with the opportunity to obtain significant funding to buy shares and keep them until a time when they can be sold for a profit.

Features and benefits of our ESOP financing

Features and benefits of ESOP Financing 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

    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 at up to 20% p.a.

    Interest rate at up to 20% p.a.

    Get loan up to 50% of the ESOP share value to buy the company equity at interest rate of up to 20% p.a.

  • Convenient tenures

    Convenient tenures

    Manage your loan easily with flexible tenure ranging from 7 days up to 36 months.

  • No hidden charges

    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

    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

    Easy prepayments

    Flexible prepayment and foreclosure options let you prepay or foreclose your loan at no additional charges.
  • Minimal documentation

    Minimal documentation

    With only 4 documents, and your photograph, get loan to buy ESOP in your company. 

  • Dedicated customer portal (My Account)

    Dedicated customer portal (My Account)

    Download your loan statement and manage your loan online with our customer portal – My Account.

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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

    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

    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

    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

    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

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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 successfully 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 Up to 20% 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 In case of default of repayment instrument, Rs. 1,200/- per bounce will be levied.
Annual maintenance charges Up to 1.18% (inclusive of applicable taxes) on the sanctioned amount
Penal interest Delay in payment of monthly instalment shall attract penal interest up to 36% per annum applicable on the monthly instalment outstanding, from the respective due date until the date of receipt of monthly instalment.
Stamp duty Payable as per state laws
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 As applicable at actuals

*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

What is ESOP financing?

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.

Who is eligible for obtaining finance for ESOP?

Any employee of the companies approved by Bajaj Finance Limited can avail of funds for ESOP.

What are the minimum and maximum loan amounts for ESOP finance?

The minimum and maximum loan amounts for ESOP finance are Rs. 1 Lakh and Rs. 175 crore, respectively.

What is the margin that you consider for ESOP financing?

Bajaj Finance provides the loan up to 50% of the ESOP value.

What is the tenure for ESOP financing?

The tenure for ESOP financing ranges from 7 days to 36 months.

What are the charges for availing of ESOP financing?

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
What is the process for availing of ESOP financing?

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.
How is interest calculated on my loan for ESOP?

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.

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