Frequently asked questions
You can view the list of securities pledged by you to BFL by viewing the IVR (Interim Valuation Report) available under View Statements in the LAS service section.
You can avail a loan against security by providing any of the following securities:
- Shares
- Mutual funds
- Insurance policy
- Bonds
*Only Bajaj Allianz, ICICI Prudential Life Insurance, Max Life & TATA AIA Unit Linked Insurance Policies are accepted.
**Loan against bonds and insurance policies are not available through the Bajaj Finserv App. Send us your requirement at las.support@bajajfinserv.in for further details.
Opening a Loan Against Securities account through Bajaj Finance is limited to an individual applicant and only KYC documents are required to be uploaded.
For easy and smooth onboarding, we recommend keeping below documents handy:
- PAN card
- Proof of Identity and Address (Aadhar, Passport, Driving Licence, Voter ID, etc.)
- Demat holding statement
To avail loan against securities, an individual should be between 18 to 90 years.
LTV (Loan to value) ratio of 50% is always required to be maintained for Loan Against Shares. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 working days.
Also in case the Loan-to-Value fall more than 85% then BFL will go ahead with the liquidation of shares after intimating the client.
You can repay the shortfall, or you can pledge more shares to repay the shortfall.
In case you fail to fulfil the shortfall within 7 working days, Bajaj Finance Limited holds the rights to sell the pledged shares to make good the shortfall.
Yes, it is possible. You may make a part prepayment or foreclose the entire loan before the end of the tenor. Besides, there are no foreclosure / prepayment charges payable for making part prepayment or foreclosing the entire loan before the end of the tenure.
The loan against shares and loan against mutual funds facility available through the Bajaj Finserv App is only applicable for individuals, for loans up to Rs. 5 crore.
We also provide loan against shares and loan against mutual funds up to Rs. 300 crore to corporates/HUF/LLP/Partnership. The actual amounts sanctioned would depend upon the credit profile of the applicants, value of securities pledged etc, at the sole discretion of Bajaj Finance Ltd. ("BFL*") Applicants other than individuals can reach us at las.support@bajajfinserv.in for availing this facility.
The loan to value currently offered against securities are as follows:
For shares: up to 50%
For mutual funds: up to 90%
For bonds: up to 95%
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 7 days to 36 months. Any renewal of the loan/ facility shall be at the sole discretion of BFL.
For any assistance with regards to loan against securities you can write to us at las.support@bajajfinserv.in.
Interest on loan against securities facility is payable on a monthly basis.
No. The interest is charged only on the loan amount that you have drawn down or outstanding loan amount.
The interest cycle is calculated from 7th day of each calendar month to the 6th day of succeeding month. Interest due towards loan against securities is generated on the 7th of every month.
LTV is loan to value ratio. This is the ratio of the loan amount outstanding to the value of pledged securities. A minimum of 50% LTV is always required to be maintained for loan against shares facility.
Post successful application and pledging of shares/ lien marking of mutual funds, the loan amount will be disbursed to your registered bank account within working 24 hours.
You can release securities provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within 24 working hours post verification.
For loan against shares, we have an approved list of 700+ stocks which may be accepted for sanctioning loan against shares. For loan against mutual funds, we have 6000+ approved schemes which are acceptable. The list of approved securities may be modified by BFL from time to time as per the internal policies and procedures of BFL.
Yes, you can swap/change the securities during the tenure of the loan. Swapping would be allowed within the approved securities list of Bajaj Finance Limited (BFL).
For the purpose of valuation, the price of your stocks/securities/ shares is updated in the Bajaj Finserv app / BFL Portal every 5 minutes and for mutual fund schemes it is updated at the end of every day.
All AMCs registered with CAMS( Computer Age Management Services) and K-Fin Technology (Registrar) can be pledged to avail loan against mutual funds.
Below are the steps to pledge shares:
In case your DP is NSOL, shares can be pledged on the app itself, for offline pledging on CSOL or NSOL, you may follow below steps:
Step 1: Reach out to your existing broker for your holding statement
Step 2: Request pledge creation form from your Depository
Participant (DP) basis the depository (NSOL/CDSL.)
Step 3: Fill the form using the below Pledge Details:
Pledge Name: Bajaj Finance Limited
Pledgee DP Details: Fill the details of the Depository Participant
Account where you maintain your account (either COSL or
NSOL)
Depository DP ID Client ID CDSL12088600 00000061
NSOL IN304300 10000061
Step 4: Submit the form to your existing broker with the details
Step 5: Once the shares are pledged, the loan* will be disbursed
*Final loan amount shall be calculated basis the effective pledge marked on the shares and the price of the shares.
Values of pledged shares are updated every 5 minutes and value of lien marked schemes are updated at the end of every day. The IVR (Interim Valuation Report) of the pledged securities is sent to your registered email address on a daily basis.
