IPO Financing Interest Rate and Processing Fees 

We advise you to check our interest rate and processing fees before applying for our IPO Financing.

Applicable fees and charges

The following charges are applicable on IPO financing:

Types of fees Charges applicable
Interest rate Up to 24% per annum and/or flat interest up to Rs. 30,000 per IPO application till the date of allotment
Processing fee Up to 4.72% of the loan amount (inclusive of applicable taxes).
Part-prepayment charges
Not applicable
Annual maintenance charges Not applicable
Bounce charges Not applicable
Penal charge ​​Delay in payment of instalment (as per payment frequency mentioned in the Sanction Letter) shall attract penal charges as more particularly described in Annexure I from the respective due date until the date of receipt of instalment (as per payment frequency mentioned in the Sanction Letter)/principal/overdue amount. To view Annexure I, kindly click here.
Stamp duty As applicable
Brokerage charges* As applicable
DP charges** As applicable
Account opening charges Up to Rs. 5000 (inclusive of applicable taxes)
Pledge confirmation charges** As applicable
Pledge invocation charges** As applicable
Demat share transfer charges (post invocation)** As applicable
Legal charges At actuals
PG facility charges Rs. 11 (Inclusive of applicable taxes) will be charged for utilising the payment gateway to make part or full payments towards the loan through digital properties.

*Charges levied by Broker to BFL and the same is recovered from the clients.

**Charges levied by NSDL to BFL and the same is recovered from the clients.

How to avail IPO Financing

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Step-by-step guide to avail IPO 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 ‘IPO Financing’.
Step 6: Enter the total portfolio value of the IPO you want to apply for and click on ‘Submit’.

Once your application form is submitted, our representative will get in touch with your further proceedings.

Frequently asked questions

What is the interest and fees on a loan?

Bajaj Finance offers interest rate of up to 24% per annum or flat interest up to Rs. 30,000 per IPO application till the date of allotment for IPO Financing.

Is there an origination fee or processing fee charged when applying for IPO Financing?

Yes, Bajaj Finance charges a processing fee of up to 4.72% (inclusive of applicable taxes) on IPO Financing.

What are the fees and charges associated with IPO Financing?

The fees and charges associated with IPO Financing are mentioned above. It's important to carefully consider the interest rate and any fees associated with a loan before accepting it to understand the full cost of borrowing and ensure that the terms are reasonable and affordable.

What are the benefits of IPO financing?

IPO Financing offers several benefits to investors:

Leverage: Investors can access funds to participate in IPOs without using their own capital entirely, allowing for larger investments.

Diversification: It enables investors to diversify their portfolio by participating in multiple IPOs simultaneously.

Potential for higher returns: If the IPO performs well, investors can potentially earn a higher return on their investment compared to the cost of financing.

No opportunity loss: Investors can seize IPO opportunities without waiting for their own funds to become available.

Is IPO direct or indirect finance?

IPO financing can be considered a form of indirect finance. In IPO financing, investors pledge their IPO shares as collateral to obtain a loan to invest in an IPO. It involves a financial intermediary, such as a brokerage or lending institution, facilitating the loan. Indirect finance typically involves an intermediary between the lender and borrower, as is the case with IPO financing.

What are the limitations of IPO financing?

Some limitations of IPO financing include:
Interest costs: Borrowers incur interest expenses on the loan, which can reduce overall returns if the IPO underperforms.

Risk of margin calls: If the IPO's share price falls significantly, investors may face margin calls and need to repay the loan or provide additional collateral.

Market volatility: IPOs can be highly volatile, and investors may face heightened risks when using leverage through financing.

Eligibility requirements: Not all investors may be eligible for IPO financing, as it often depends on factors like creditworthiness and the lending institution's policies.

What is the difference between IPO and bond?

IPO (Initial Public Offering) and bonds are distinct forms of investment:

IPO: An IPO is the first sale of a company's shares to the public. Investors buy shares of the company, becoming partial owners, and hope to profit from potential stock price appreciation.

Bond: A bond is a debt instrument where investors lend money to an issuer, which can be a corporation, government, or other entity. In return, investors receive periodic interest payments and the bond's face value at maturity. Bonds are typically considered lower risk than stocks.

The key difference is that IPOs represent equity ownership, while bonds represent debt with regular interest payments. IPOs involve potential for capital appreciation, while bonds offer income through interest payments and repayment of principal at maturity.

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* Subject to sole discretion of Bajaj Finance Limited and regulatory guidelines.