Key features of ESOP loans
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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)
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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.
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Interest rate up to 15% p.a.
Get loan up to 40% of the ESOP share value to buy the company equity at interest rate of 8% to 15% per annum.
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Convenient tenures
Manage your loan easily with flexible tenure ranging from 7 days up to 36 months.
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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.
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Wide list of partnered corporates
Choose from our wide list of approved companies and subscribe to your company ESOP. Get loan up to 40% of the share value.
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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.
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Dedicated customer portal (My Account)
Download your loan statement and manage your loan online with our customer portal – My Account.
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 your application form is submitted, our representative will get in touch with your 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.
Frequently asked questions
Multiple companies offer ESOP facility to incentivize and retain their employees, especially key employees who are crucial to the success of the business. ESOPs provide employees with the opportunity to buy company stock at a discounted price or to receive stock as part of their compensation package.
For ESOP financing Bajaj has identified a list of companies. All employees of the company eligible for ESOP can get loan to buy the ESOP.
Click here to see the list of companies.
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.
ESOPs provide employees with the opportunity to buy company stock at a discounted price or to receive stock as part of their compensation package. With the help of lender’s funding for exercising ESOPs, the employees need not worry about managing the finances to utilise this investment opportunity. For ESOP financing Bajaj has identified a list of companies. All employees of the company eligible for ESOP can get loan to buy the ESOP.
An ESOP Loan Agreement is a legal document that outlines the terms and conditions of a loan provided by an Employee Stock Ownership Plan (ESOP) to a participating employee. This agreement typically includes details such as the loan amount, interest rate, repayment schedule, collateral (usually the employee's company shares), and any default provisions.
When an ESOP loan is paid off with, the employee can exercise their ESOPs to buy shares in the company. The employee can then sell the shares in the future for a profit.
ESOP financing works by setting up an ESOP trust that acquires company shares using company contributions or borrowed funds. Shares are allocated to employees, while the company repays any loan and enjoys tax benefits.
An ESOP can be financed through leveraged ESOPs using borrowed funds, non-leveraged contributions of cash or shares, seller financing, or hybrid structures. The company typically repays loans via annual contributions to the ESOP trust.
ESOP financing can be leveraged, non-leveraged, seller-financed, or hybrid. Leveraged ESOPs use borrowed funds to buy shares, while non-leveraged ESOPs rely on direct company contributions of cash or stock.
An ESOP loan is repaid through regular company contributions to the ESOP trust. These contributions are used to service principal and interest, and are usually tax-deductible for the company.
Yes, small and mid-sized businesses can use ESOP financing, provided they have stable cash flows and a clear succession plan. ESOPs are often used for ownership transition and employee retention.
Key risks include increased financial obligations, valuation volatility, dilution of ownership, and administrative complexity. Poor cash flow planning may strain operations if the company struggles to meet ESOP loan repayments.
An ESOP may dilute existing ownership, but control typically remains with current management. Voting rights are often exercised by trustees, allowing owners to retain operational control unless otherwise structured.
