Loan Against Shares eligibility and documents

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

Eligibility criteria and documents required

Anyone can apply for our loan against shares online, as long as they meet the four basic criteria mentioned below. Also keep a few documents handy while applying for Loan against shares.

Eligibility criteria

  • Nationality: Indian
  • Age: 18 to 90 years
  • Employment: Salaried, self-employed
  • Security value: Minimum Rs. 50,000


  • KYC documents: Aadhaar/ passport/ voter’s ID
  • PAN card
  • DEMAT Holding Statement

Corporates/ HUF/ LLP/ Partnership/ Trust/ Sole Proprietorship can apply for loan against shares of up to Rs. 1000 crore, by reaching us at

More details

In order to qualify for a loan against shares, there are two important requirements that must be met: the security class, and the value of the share, 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.

How to apply for a loan against shares

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Step-by-step guide to apply for loan against shares

Step 1: Click on the ‘Apply Now’ button.
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 your basic details like – PAN, DOB and email ID.
Step 5: Check your loan eligibility by entering your security name and quantity.
Step 6: Choose the loan amount you wish to avail.
Step 7: Get your KYC done using Digilocker or by manually uploading the documents.
Step 8: Enter your bank details and verify.
Step 9: Proceed for e-agreement and e-mandate by authenticating it via OTP.
Step 10: Your loan will be disbursed after successful pledging and verification

Frequently asked questions

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

The eligibility criteria for loan against shares 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 apply for a loan against shares?

To apply for loan against shares, 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 shares.

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 shares?

Through the loan against shares by Bajaj Finance, you can get a pre assigned loan of Rs. 10,000 to Rs. 5 crore.

Who is eligible for a loan against shares?

All individuals: both self employed or salaried are eligible for online loan against shares with Bajaj Finance.

Corporates/ HUF/ LLP/ Partnership can apply for loan against shares of up to Rs. 1000 crore, by reaching us at

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

The documents required to apply for loan against shares 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 shares and securities you have traded in a given period.
What are the benefits of a loan against shares?

A loan against shares offers several benefits, including liquidity without selling assets, enabling investors to meet immediate financial needs. Interest rates are often lower compared to unsecured loans, making it a cost-effective solution. Additionally, borrowers retain ownership of the shares, participating in potential market gains.

What are the RBI guidelines to avail loan against securities?

The RBI guidelines for availing loans against securities include:

  1. Eligible securities: The RBI guidelines for loans against shares categorise securities into Group I, II, and III based on trading frequency and the cost impact of trades over the past six months. This categorisation helps define the types of assets eligible as collateral.
  2. Loan to value (LTV) ratio: The LTV ratio is generally capped at 50% for shares and can vary for other securities.
  3. Margin requirements: Banks must maintain a specific margin and are required to adjust the loan value if the security value declines.
  4. Borrower eligibility: The borrower must adhere to KYC norms and have a satisfactory credit history.
  5. End-use restrictions: Loan funds typically should not be used for speculative purposes or to buy additional shares.

Is loan against shares taxable?

The act of taking a loan against shares is not taxable because it is a debt and not an income. However, if the borrowed funds are invested and generate income, that income (e.g., interest, dividends) may be taxable according to the relevant income tax laws. Additionally, if shares are sold to repay the loan, any capital gains from the sale of shares will be subject to capital gains tax based on the holding period and applicable rates. It is important to consult with a tax professional to understand specific liabilities based on how the loan funds are used.

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