Loan Against Bonds Bonds - Eligibility and Documents

Read on to know the criteria required to apply for our loan against bonds.

Eligibility criteria and documents required

To avail Loan Against Bonds with Bajaj Financial Limited, you must meet the below criteria:

Eligibility criteria

  • Nationality: Indian
  • Age: 18 to 90 years
  • Employment: Salaried, self-employed
  • Security value: Minimum 50k

Documents required

  • KYC documents: Passport/ Driving License/ Voter’s Identity Card/ Aadhaar/ Job Card issued by NREGA/ Letter issued by the National Population Register
  • PAN card
  • DEMAT holding statement

What are the essential requirements for a loan against bonds?

In order to qualify for a loan against bonds, there are two important requirements that must be met: the security class, and the value of the bond, being used as collateral. It is important to review the list of approved securities before applying, and to have all necessary documents prepared for online submission. After your application is submitted, a representative will guide you through the next steps, and once your application is verified, the loan amount will be deposited into your bank account. It is important to note that there are terms and conditions that apply, and if you require more information, there are links available at the top of the page.

Frequently asked questions

What are the eligibility criteria to apply for a loan against bonds?

The eligibility criteria for loan against bonds with Bajaj Finance are:

  • You must be an Indian citizen.
  • Your age should be between 18 to 90 years.
  • You must either be Salaried, or self-employed.
  • You must have a minimum security worth Rs. 50,000.
How to get a loan against bonds?

To apply for loan against bonds, click on the ‘Apply’ button on the page. You will be redirected to our form, where you will have to fill your personal details and the value of your bonds.
Once all your details have been verified through an OTP, sent on your phone, our representative will contact you for further processing of your application.

What are the minimum and maximum amounts that can be borrowed through a loan against bonds?

Through the loan against bonds by Bajaj Finance, you can get a pre assigned loan of Rs. 10,000 to Rs. 1000 crore.

What documents are required to apply for a loan against bonds?

The documents required to apply for loan against bonds with Bajaj Finance are:

  • PAN Card
  • One KYC documents from Aadhaar, passport or voter’s ID
  • Demat holding statement that gives an account of the bonds and securities you have traded in a given period.
What are the bond loan requirements in terms of securities?

To avail of a loan against bonds, you must pledge listed, dematerialised, and SEBI-approved bonds. These should be held in your name and be free of any existing lien or encumbrance at the time of loan application.

Which types of bonds are accepted for a loan?

Typically, government bonds, PSU bonds, and high-rated corporate bonds are accepted. These must be listed on recognised exchanges, held in demat form, and approved by the lender for pledging under the loan scheme.

What is the Loan-to-Value (LTV) ratio offered against bonds?

The LTV ratio offered against bonds usually ranges up to 95%, depending on the bond type, issuer rating, and market liquidity. The actual amount sanctioned will be based on the real-time value and risk profile of the pledged bonds.

What is the tenure of a loan against bonds?

The tenure of a loan against bonds can range from a few months up to 36 months. Some lenders may offer flexible repayment terms with the option to renew or roll over the loan upon mutual agreement.

Is there any processing fee or interest rate charged?

Yes, lenders charge a processing fee (often up to 4.72% of the loan amount) and interest rates typically range between 8% to 15% per annum. Rates may vary based on bond type, loan amount, and borrower profile.

Can I prepay or foreclose my loan against bonds?

Yes, most lenders allow you to prepay or foreclose the loan at any time. Lenders may charge a nominal foreclosure fee, on early repayment, especially for loans with flexible repayment structures.

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Disclaimer:

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corp. Office: Bajaj Broking, 1st Floor, Mantri IT Park, Tower B, Unit No 9, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | NSE Cash/F&O (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403. Website: https://www.bajajbroking.in/