Frequently asked questions

What is a loan against securities?

Loans against securities are available in the form of an overdraft facility. It is a loan obtained by pledging against financial securities like shares, stocks, mutual funds, fixed maturity plans, units and bonds. You can pledge the securities in which you have invested as collateral against the loan amount. A loan against securities is the best way to make your investments work harder and smarter for you.

What is the purpose of a loan against securities?

With a loan against securities, you can instantly raise funds to meet your personal needs, any emergencies etc. In loan against securities, you pledge your shares, equity shares, bonds or insurance policies as collateral. It is advisable to avail of this facility when you expect a certain sum of money a few months down the line and need some funds in the interim.

What are the features of a loan against securities?

Bajaj Finance offers a comprehensive list of approved securities from shares, mutual funds to initial public offerings, through which you can avail of collateral for a loan. Here are the features offered by Bajaj Finance on loans against securities.

  1. Get a loan of up to Rs. 10 crore
  2. Minimal documentation
  3. Easy online access to your loan account from anywhere from the Experia portal on a real-time basis
  4. A dedicated relationship manager will assist you with any queries to help you avail of a loan against securities easily
  5. You can repay the loan with nil part payment or foreclosure charges as per your convenience.
What are the various types of loans against securities?

You can borrow the following loans against securities from Bajaj Finance.

  1. Loan against shares
  2. Loan against bonds
  3. Loan against mutual funds
  4. Loan against insurance policies*
  5. Loan against Employee Stock Ownership Plan (ESOP)
  6. Loan against Initial Public Offerings (IPOs)
  7. Loan against Fixed Maturity Plans (FMPs)

Note: *Only Bajaj Allianz Unit-linked Insurance Policies

Which types of loans against securities does Bajaj Finance offer?

Bajaj Finserv offers loans against securities as term loans and Flexi loans. In a term loan, a customer borrows for a certain period like 3, 6, 9 and 12 months and can repay the loan amount at the time of completion of the loan tenor. In a Flexi loan, customers can request repayment and disbursement up to the eligibility amount at any time during the tenor of the loan.

Can I foreclose my loan against securities?

You can choose to foreclose your loan anytime you want after payment of interest and the principal loan amount. There are no foreclosure charges.

Can I make part payments on my loan against securities?

All our loans come with a part-prepayment facility. With this, you can part-prepay as much as you want during the tenor of the loan.

What are the minimum and maximum loan amounts in loan against securities?

At Bajaj Finance, you can avail of a minimum loan amount of Rs. 5 lakh and a maximum loan amount of Rs. 10 crore.

How do I apply for a loan against securities?

At Bajaj Finance, you can apply through our online application facility:

  1. Click on ‘Apply Online’ and enter your basic details like name, phone number, city, email ID
  2. Select your total portfolio value and types of securities on the form
  3. You will receive a confirmation on email and SMS about the status of your application
  4. One of our representatives will contact you for submission of required documents and take the process further

After successful verification of your documents, you will receive the loan amount in your bank account and the login details of your online loan account.

What are the benefits or advantages of taking a Loan against Shares from Bajaj Finance?

Bajaj Finance offers a wide list of approved securities to help you seek a loan to meet your financial needs quickly. With Bajaj Finance, you can get a loan of up to Rs. 10 crore by pledging your collateral against shares, bonds, mutual funds, ESOPs, insurance policies, and more. Moreover, you can repay your loan with nil part payment or foreclosure charges. Also, you will have a dedicated relationship manager who will assist you with all your queries.

When will I get my loan against shares?

For all online applications, you will get instant approval.

How do I repay the loan?

You can repay the loan at any time during the loan tenor by repaying the due interest and principal loan amount through RTGS/NEFT/cheque. You can also refund the loan through our customer portal – Experia.

What is the online process of a loan against shares?

Getting a loan against shares online is easy and convenient. Shares are stored digitally on a Demat account; therefore, you need to apply for the loan online. With our online application facility, you can apply for a loan against shares from any location and get instant loan approval.

How do I apply online for an instant loan against securities?

You can click here to apply for a loan. To know more about the details, check out the 'how to apply' section.

On what criteria will the loan be sanctioned to me?

All loans are sanctioned based on the internal policies of Bajaj Finance Limited.

When will I get the loan if I apply online?

The loan is disbursed within 72 hours from the time of loan application approval.

What are the key advantages of applying for loans online?

You can apply for a loan from any location with our hassle-free online application facility. You have to fill in some quick details, and our representatives will respond to your application shortly.

How can I check the status of the loan for which I have applied online?

To check on your application status, you can call our customer care on 1800-103-3535.

Is the information provided by me secure?

All the information provided is secure with us. We use state-of-the-art security systems to ensure the data provided during the online application is completely secured.

Is it safe to use my debit card on this site?

All transactions on our website are safe. We use best-in-class security, and the transactions done are secure. In addition, we use SSL data encryption that protects the information from being viewed by unauthorised individuals.

How do I cancel a transaction or get a refund?

In case of any discrepancies, we will refund the money, provided that the reasons are valid. You can call us at 1800-103-3535. Read the terms and conditions for more details.

What are the minimum and maximum loan amounts for a loan against shares?

The minimum loan amount is Rs. 15 lakh and the maximum loan amount is Rs. 10 crore.

If a customer does not have a Demat account with Bajaj Finance, can he still avail of a loan against shares from Bajaj Finserv?

Yes, you can pledge shares held with Bajaj Finance and any depository participant in National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL).

What is the loan to value and margin?

You can get loans up to 50% of the value of pledged securities.

How much interest does a customer need to pay?

Interest is calculated daily on the outstanding amount, which needs to be repaid monthly. This also depends on the portfolio of the customer.

Can a customer pledge all the securities of his portfolio?

At Bajaj Finserv, we have our own approved scrip list, and money is only lent against those scrips.

If a customer holds securities in their company’s name, can they avail of a loan against them?

Yes, a customer can avail of a loan by pledging his company’s shares after fulfilling the relevant documentation requirements.

Can a customer pledge security held in the name of their spouse, children or parents?

Yes, they can avail of a loan against securities held by their spouse, children or parents. However, they should keep all of them as co-borrowers/security providers.

What are the pledge charges?

Pledge charges vary between individual depository participants. However, the standard charge is 0.04% of the pledge amount.

How can a customer get to know their loan eligibility amount?

For a loan against securities, Bajaj Finserv considers the client’s profile, valuation of pledged securities and existing obligations, if any, while calculating the loan eligibility amount. In addition, the Additional Surveillance Measures (ASM) can help know the eligibility amount at the time of the personal meeting.

How can a customer obtain their loan against securities account statement?

A customer can obtain the account statement online through our customer portal – Experia, or contact their loan against securities relationship manager.

How can a customer repay the loan amount?

A customer can repay the loan amount in part or whole by drawing a cheque in favour of Bajaj Finserv or through RTGS/NEFT at any point in time during the loan tenor. Customers can also repay the loan through our customer portal – Experia.

Can the customer release the pledged shares/securities partly?

Yes, a customer can release the same after repaying the loan amount to ensure that the margin is maintained as per requirement.

What are the repayment charges?

There are no repayment charges at Bajaj Finserv.

How can a customer release their pledged securities?

A customer can initiate a release request through his depository participant after repaying the loan amount and interest to Bajaj Finserv.

What is ESOP financing?

ESOP stands for Employee Stock Ownership Plan that gives the workers a benefit of ownership interest in the company. A lender funds an employee to exercise his/her vested shares under ESOP by asking to pledge those receivable shares at the time of allotment.

Who is eligible for obtaining finance for ESOP?

Any employee of the companies approved by Bajaj Finance Limited can avail of funds for ESOP.

What are the minimum and maximum loan amounts for ESOP finance?

The minimum and maximum loan amounts for ESOP finance are Rs. 10 lakh and Rs. 10 crore, respectively.

How is the loan eligibility amount calculated?

Loan eligibility is calculated based on:

  1. Vested price
  2. Market price
  3. Margin of shares
Do you also fund Fringe Benefit Tax (FBT)?

Yes, we fund Fringe Benefit Tax (FBT) if the required loan amount and the FBT amount are within the eligible loan amount.

What is the margin that you consider for ESOP financing?

The margin varies from company to company. However, it ranges from 30% to 40%.

What is the tenor for ESOP financing?

The tenor for ESOP financing ranges from 30 days to 180 days.

What are the charges for availing of ESOP financing?

Here are the charges to avail of ESOP financing:

  1. Rate of interest
  2. Processing fees
  3. Pledge/ unpledged charges
  4. Demat account opening charges
  5. AMC charges for demat account
  6. Documentation charges
What is the process for availing of ESOP financing?

The employee needs to fill up the loan application form, and the new Power of Attorney (POA) based Demat account form and submit them to Bajaj Finance Limited.

  1. The employee has to submit their ESOP grant letter issued by the employer.
  2. Bajaj Finance will check/verify the documentation and open the loan account plus a POA Demat account for ESOP finance.
  3. The employee will have to submit a pledge form, duly signed, to Bajaj Finance Limited.
  4. Bajaj Finance will calculate the loan eligibility amount and inform the employee of the same.
  5. The employee should mention the POA Demat account number created for ESOP financing and initiate the application to exercise ESOP.
  6. Bajaj Finance will RTGS/issue a cheque in favour of the respective employer on behalf of the employee, based on the eligibility amount and ESOP requirement.
  7. The employee should inform the date of allotment of shares to Bajaj Finance.
  8. The employer must then allot shares into the POA Demat account of the employee, where the POA is in favour of Bajaj Finance Limited.
  9. Bajaj Finance will create a pledge on those shares once the shares are allotted in the POA Demat account.
How is interest calculated on my loan for ESOP?

Interest is calculated based on the tenor you opted for ESOP financing at the time of application. However, Bajaj Finance charges a minimum of 30 days of interest if the loan is repaid within 30 days.

What is the process for interest payment?

Bajaj Finance Limited will bank a post-dated cheque for interest collection every month.

How can I repay my loan?

You can repay your loan by selling the allotted securities through Bajaj Finance Limited. In this case, Bajaj Finance initiates the selling of the securities and retains the receivables to the effect that it covers the loan and interest. The rest of the amount will get credited to the employee’s beneficiary account; by paying the loan amount along with interest to Bajaj Finance. In this event, Bajaj Finance will reconcile the account, release the pledge, and transfer the securities to the employee’s beneficiary account.

Can I apply for ESOP multiple times?

Yes, you may apply for ESOP financing multiple times if your loan account is active with Bajaj Finance Limited.

Can I avail of this loan through an agent?

We also distribute our online loan against securities through the below partners:

  1. NJ India Invest Pvt. Ltd.
  2. Prudent Corporate Advisory Services Ltd.
  3. Aruvek Advisory Services Pvt. Ltd. (Kuvera)
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