Bajaj Finserv's loan against securities eligibility calculator offers several key benefits:
- Quick and easy assessment: The calculator provides a rapid assessment of your loan eligibility based on your stock holdings.
- Accurate loan amount estimation: By inputting the stock name/ISIN and quantity, the calculator provides an accurate estimate of the loan amount you can potentially avail.
- Informed decision-making: This information empowers you to make informed decisions about applying for a loan against your shares, knowing your borrowing capacity beforehand.
- Time-saving: The calculator eliminates the need for manual calculations and saves you time and effort.
- Convenience: The online tool is easily accessible and can be used from anywhere with an internet connection.
By utilizing this user-friendly tool, you can quickly determine your loan eligibility and plan your financial strategies accordingly.
Loan against shares eligibility requirements
To be eligible for a loan against shares, borrowers must meet certain criteria set by lenders. These criteria typically include the following:
- Ownership of shares: Borrowers must be the rightful owners of the shares they wish to pledge as collateral.
- Age: Borrowers must be of legal age, usually 18 years or older, to be eligible for a loan against shares.
- Creditworthiness: Lenders may assess the borrower's creditworthiness based on factors such as credit score, income, and repayment history.
- Loan-to-value (LTV) ratio: Lenders may have a maximum LTV ratio, which determines the maximum loan amount based on the value of the pledged shares.
- Other documents: Borrowers may be required to submit identification proof, address proof, income proof, and details of the shares to be pledged.
How to use the calculator and what factors it considers
Using Bajaj Finserv's loan against securities eligibility calculator is straightforward:
- Add your stock name: Enter the name or ISIN (International Securities Identification Number) of the stocks you own.
- Add units of stock: Specify the number of units you hold for each stock.
- Add scrips: You can add multiple scrips to calculate the loan eligibility for your entire portfolio.
The calculator then considers the following factors to determine your loan eligibility:
- Current market value of your stocks: The calculator fetches real-time or near real-time market data to determine the current value of your stock holdings.
- Loan-to-Value (LTV) ratio: The calculator applies a specific LTV ratio, which represents the percentage of the stock value that can be loaned against. This ratio may vary depending on factors like stock volatility and market conditions.
- Other factors: The calculator may also consider other factors, such as the creditworthiness of the borrower and the overall market conditions.
By considering these factors, the calculator provides you with an estimated loan amount that you can potentially avail against your stock portfolio.
Documents required for Loan Against Shares
To apply for a loan against shares, you must provide basic documentation to verify your identity and the ownership of your shares. Most lenders typically require:
KYC documents: Aadhaar, passport, voter ID, driving licence, NPR letter, or NREGA job card
PAN card
DEMAT holding statement
These documents help confirm your identity and accurately assess the shares you plan to pledge. Keeping these ready beforehand ensures a smooth and quick application process.
How to apply for a loan against shares?
Applying for a loan against shares is relatively simple and can often be completed online in just a few steps. Here’s how you can do it:
Step 1: Choose a lender
Research various lenders and compare interest rates, features, and service quality.
Step 2: Check eligibility
Ensure you meet the basic requirements such as age, ownership of shares, and a good credit profile.
Step 3: Gather documents
Keep your ID proof, address proof, PAN card, and Demat statement ready for uploading.
Step 4: Use a loan against shares calculator
Check how much loan you may be eligible for before applying.
Step 5: Fill in the application form
Provide accurate personal information and upload the required documents.
Step 6: Share valuation
The lender will assess the value of your shares based on the current market price and their LTV policy.
Step 7: Pledge your shares
Transfer your shares digitally to the lender’s Demat account for loan approval.
Step 8: Receive the funds
Once the shares are pledged, the approved loan amount is disbursed to your bank account.
Step 9: Repayment
Repay the loan in flexible instalments or as per your chosen repayment plan.
Step 10: Regular monitoring
Keep an eye on your pledged shares to stay aware of market movements and avoid margin calls.
How the loan-to-value ratio impacts your loan amount?
The Loan-to-Value (LTV) ratio plays a crucial role in determining your loan amount. A higher LTV gives you a bigger loan, while a lower LTV may reduce the amount you can borrow. Generally, stable and less volatile shares may offer higher LTV ranges. On the other hand, highly volatile shares may be assigned a conservative LTV for safety.
Understanding how the LTV affects your borrowing helps you plan better and avoid surprises during the application process.
Why investors prefer loans against shares during emergencies?
Many individuals choose a loan against shares during urgent cash needs because it allows them to raise funds quickly without liquidating their investments. Your shares remain invested, giving you the chance to benefit from future price appreciation. It also ensures that you do not have to exit the market at a loss, especially during market dips. This makes LAS a flexible and strategic financial solution during medical needs, business requirements, or sudden expenses.
Tips to get the best value from a loan against shares
Keep your Demat account details updated.
Use the calculator beforehand to get an accurate estimate.
Monitor market movements regularly to avoid margin calls.
Borrow only what you need to reduce interest expenses.
Maintain a good credit score for smoother approvals.
Conclusion
A loan against shares gives you a convenient way to access funds while staying invested in the market. Using a calculator before applying helps you understand your borrowing power, but the real value lies in how effortlessly you can turn your shareholdings into usable liquidity. With the right documents, clear eligibility, and a simple online process, getting a loan against shares becomes easy and efficient. If you want liquidity without disturbing your long-term investments, LAS is a smart choice.
Unlock the value of your shares without selling them get fast, flexible funds with a loan against shares. Apply now
