Loans Against Securities
Loans Against Investments
Frequently asked questions
The loan against shares facility available through the Bajaj Finserv app is only applicable for individuals, for loans up to Rs. 5 crore. We also provide offline loans against shares up to Rs. 1000 crore to corporates/HUF/LLP/Partnership. The actual amounts sanctioned would depend upon the credit profile of the applicants, the value of securities pledged etc., at the sole discretion of Bajaj Finance Ltd. (“BFL”) Applicants other than individuals can reach us at email@example.com for availing this facility.
For sanctioning loans against shares, we have an approved list of 1100 + stocks which may be accepted. The list of approved securities may be modified by BFL from time to time as per the internal policies and procedures of BFL.
You can avail of a loan against mutual funds by lien marking the 5000 + funds.
Click here to check our approved list of mutual funds.
For any assistance with regard to a loan against securities, you can write to us at firstname.lastname@example.org
Yes, you can swap/change the securities during the tenure of the loan. Swapping would be allowed at sole discretion of Bajaj Finance Limited (BFL) and within the approved securities list of BFL.
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.
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.
For mutual fund schemes, it is updated at the end of every day.
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 securities is generated on the 7th of every month.
Taking a loan against securities can be a suitable option for those who require short-term liquidity and have a diversified securities portfolio. One advantage of taking a loan against securities is that the interest rate is usually lower than other types of unsecured loans. This is because the loan is backed by collateral in the form of securities, which reduces the risk for the lender.
With Bajaj Finance Limited, you can avail a loan against shares up to 50% of the share value or up to Rs. 5 crore. Corporates/ HUF/ LLP/ Partnership/ Trust/ Sole Proprietorship can apply for loan against shares of up to Rs. 1000 crore, by reaching us at email@example.com.
Yes, investors can continue to receive dividends and interest on their pledged securities because the ownership of the securities is still with the borrower, just that the investments have been pledged as collateral for the loan. However, it is essential to read the loan agreement carefully to review the terms and conditions of the loan.
You can apply online for a loan against securities with Bajaj Finance limited. Click here to begin your application process.
Various types of securities can be used as collateral for loans. Bajaj Finance, for example, offers loans against shares, bonds, mutual funds, insurance policies, IPOs (Initial Public Offerings), and ESOPs (Employee Stock Ownership Plans).
The interest rate on a loan against securities can vary depending on the collateral used. In the case of Bajaj Finance, the interest rate is up to 20% per annum. Please note that interest rates may vary from one lender to another and are subject to change over time. It's essential to check with the specific lender for their current interest rates and terms.
The loan-to-value ratio for loans against securities varies depending on the lender, type of collateral, and other factors. Bajaj Finance offers different loan-to-value ratios for shares (up to 50%), bonds (up to 95%), and mutual funds (up to 90%).
- Penalties and fees: Non-repayment often incurs penalties and fees, increasing the overall debt burden.
- Asset liquidation: Lenders can liquidate the securities you provided as collateral to recover the outstanding amount, potentially resulting in loss of assets.
- Communication is key: If facing difficulties, communicate with your lender early. They may offer solutions like restructuring or refinancing to help you manage the loan.