Frequently asked questions
The loan against bonds facility available through the Bajaj Finserv app/web is only applicable for salaried and self- employed customers, to get loan of up to Rs. 5 crore.
We also provide loans against bonds up to Rs. 1000 crore to Corporates/HUF/LLP/Partnership/Trust/Sole Proprietorship. For this you can reach us at email@example.com.
The actual amounts sanctioned would depend upon the credit profile of the applicants, the value of bonds pledged etc., at the sole discretion of Bajaj Finance Ltd. (“BFL”).
You can avail of a loan against bonds against a wide list of approved bonds. Click here to view to approved list of bonds.
The loan-to-value currently offered against bonds are up to 95% of share value.
Please note that the above are subject to change depending upon the applicable regulations and internal policies of BFL.
The tenure of the loan is to 36 months. Any renewal of the loan/facility shall be at the sole discretion of BFL.
For sanctioning loans against bonds, we have an approved list of which may be accepted. The list of approved bonds may be modified by BFL from time to time as per the internal policies and procedures of BFL.
For any assistance with regard to a loan against bonds you can write to us at firstname.lastname@example.org
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure. Bajaj levies 4.72% pre-payment and Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. foreclosure charges.
Yes, you can swap/change the bonds during the tenure of the loan. Swapping would be allowed within the approved bonds list of Bajaj Finance Limited (BFL).
You can view the list of bonds pledged by you to BFL by viewing the IVR (Interim Valuation Report) available under View Statements in the Loan Against Securities service section.
To raise a request for additional disbursement, please choose the 'Disbursement Request’ option in the Loan against bonds Service Section available under the ‘My Relations’ tab.
Please note it is subject to LTV being continued to be maintained with respect to the bonds pledged and principal outstanding.
For valuation, the price of your bonds is updated in the Bajaj Finserv app / BFL portal every 5 minutes.
Interest on a Loan against bonds facility is payable monthly.
No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.
The interest cycle is calculated from the 7th day of each calendar month to the 6th day of the succeeding month. Interest due towards a Loan against bonds is generated on the 7th of every month.
Loan to Value ratio or LTV is the ratio of the loan amount outstanding to the value of pledged bonds. 95% LTV is always required to be maintained for Loan against bonds facility. LTV is subject to changes in regulations. Any shortfall in the maintenance of the 95% LTV occurring on account of movement in the share prices shall be made good within 7 business days.
Opening a Loan against bonds account through the Bajaj Finserv App with respect to individual Borrowers and which is subject to successful KYC completion
For easy and smooth onboarding, we recommend keeping the below documents handy:
- PAN card
- Proof of Identity and Address (Aadhaar, Passport, Driving Licence, Voter ID etc.)
- Demat holding statement
Post successful execution of agreement and additional documents as required by BFL, and creation of pledge of bonds, the loan amount will be disbursed to your registered bank account within minimal time.
95% LTV is always required to be maintained for Loan against bonds facility. LTV is subject to changes on account of Regulatory Changes. Any shortfall in the maintenance of the 95% LTV occurring on account of movement in the share prices shall be made good within 7 business days.
Further, in case the Loan to Value falls more than 85% then BFL will go ahead with the liquidation of bonds with an intimation to the Borrower.
You can repay the shortfall or pledge more bonds to make the shortfall good.
In case you fail to fulfil the shortfall within 7 business days, Bajaj Finance Limited holds the right to sell the pledged bonds to make good the shortfall.
You can release bonds, provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within minimal time post-verification.
To avail Loan against bonds, an individual should be between 18 to 65 years of age.
If you have a minimum of Rs. 50,000 bonds in your demat account, you can apply for a Loan against bonds with Bajaj Finance. Against the bonds you can get loan amount ranging from Rs. 10,000 to Rs. 5 crore.
You can apply for Loan against bonds by clicking on the ‘Apply’ button on this page. Fill in your personal details, and the value of your bonds. Accordingly verify your details through an OTP.
Corporates/HUF/LLP/Partnership can apply for Loan against bonds of up to Rs. 1000 crore, by reaching us at email@example.com
A Loan against bonds (LAS) is a type of loan where the customer pledges their bonds as collateral to obtain a loan from Bajaj Finance. The process of obtaining a Loan against bonds typically involves the following steps:
a. Evaluation of bonds: The lender will evaluate the bonds that the borrower wants to pledge as collateral. The lender will consider the value of the bonds, the market conditions, and the risks involved.
b. Loan amount: Based on the evaluation of the bonds, Bajaj Finance will determine the maximum loan amount that can be provided. Bajaj Finance offers loan up to 95% of the market value of the bonds.
c. Loan terms: The borrower and Bajaj Finance will agree on the terms of the loan, including the interest rate, repayment period, and any other conditions.
d. Pledge of bonds: The borrower will pledge the bonds as collateral with Bajaj Finance, corresponding to which the loan amount will be disbursed to the borrower.
e. Repayment: The borrower must repay the loan amount along with the interest within the agreed-upon period. If the borrower fails to repay the loan, Bajaj has the right to sell the pledged bonds to recover the loan amount.
In summary, a Loan against bonds provides a way for borrowers to access funds while still retaining ownership of their securities
Bajaj Finance offers interest rate of up to 20% for Loan against bonds. The final interest rate will depend on the types of bonds and value of bonds being pledged.
Apart from that there are other fees applicable. Common fees include processing fees, part-prepayment fee, foreclosure charges and many more. These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.
Yes, Bajaj Finance charges a processing fee of up to 4.72% of the loan amount (inclusive of applicable taxes).
The fees and charges associated with Loan against bonds 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.
A Loan against bonds is a type of loan offered by banks and financial institutions, where a borrower can pledge their bonds as collateral to obtain a loan. Here are some of the features of a Loan against bonds:
a. Collateral: Loan against bonds is a secured loan where bonds are used as collateral. The amount of loan depends on the value of the bonds pledged.
b. Loan amount: The loan amount is typically a percentage of the market value of the pledged bonds. For Bajaj Finance it is 95% of the market value of the bonds.
c. Repayment: The borrower can repay the loan amount in EMIs (equated monthly installments), which includes both principal and interest.
d. Prepayment: Bajaj allows the borrower to prepay the loan amount before the due date at 4.72% charges.
For loan against shared with Bajaj Finance, you can pledge bonds from 40+ AMCs.
Click here to check the list of approved bonds.
A Loan against bonds is a type of loan that allows individuals to borrow money by pledging their bonds or securities as collateral. Here are some benefits of taking a Loan against bonds:
- Lower interest rates: Since the loan is secured, lenders usually offer lower interest rates compared to unsecured loans. The interest rates are determined based on the value of the bonds, the loan amount, and other factors.
- No need to sell bonds: By pledging bonds as collateral, the borrower can get access to funds without having to sell their bonds. This can be beneficial in case the borrower is holding bonds that are expected to appreciate in value.
- Flexible repayment options: The repayment options for Loan against bonds are usually flexible, allowing borrowers to choose a tenure that suits their needs.
- Interest only on utilised amount: Of the total assigned limit against your bonds, the customer has the option to withdraw only the required amount, and interest is paid only on the withdrawn amount.
- Multipurpose use: The funds obtained through a Loan against bonds can be used for various purposes like funding a business, purchasing a property, financing education, medical expenses, etc.
The eligibility criteria for Loan against bonds with Bajaj Finance are:
- You must be an Indian citizen.
- Your age should be between 18 to 65 years.
- You must either be Salaried, or self-employed.
- You must have a minimum-security worth Rs. 50,000.
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.
Through the Loan against bonds by Bajaj Finance, you can get a preassigned loan of Rs. 10,000 to Rs. 5 crore.
All individuals: both self-employed or salaried are eligible for online Loan against bonds with Bajaj Finance.
Corporates/HUF/LLP/Partnership can apply for Loan against bonds of up to Rs. 1000 crore, by reaching us at firstname.lastname@example.org.
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.