Loan Against Shares for Investments

Investing is a successful approach to using your money and possibly increasing your fortune. Your money may grow in value and outpace inflation if you make wise investment decisions. The power of compounding and the trade-off between risk and return are the main reasons investment has a higher growth potential. If you are already an investor and looking to grow your investments, a loan against shares is a good option for you. Here are some options where you can invest.

Mutual Funds

MUTUAL FUNDS

For investors looking to diversify their portfolio, mutual funds offer a chance to invest money in stocks, bonds, or other assets with the help of qualified fund managers.

Trading

TRADING

You can opt for utilising your loan amount for trading more shares. Choose the trading type based on your financial goal, the period you want to stay invested for, and other factors to potentially generate higher returns.

Fixed Deposit

FIXED DEPOSIT

A low-risk investment option provided by banks and Non-Banking Financial Institutions is a fixed deposit or FD. You can invest a fixed sum of money in FD for a predetermined period and receive a fixed interest rate for the tenure.

Exchange Traded Funds

EXCHANGE-TRADED FUNDS

A low-risk investment option that contains a variety of stocks or other securities, ETFs are a great form of asset for most individual investors to create a diversified portfolio.

Real Estate Investment

REAL ESTATE INVESTMENT

The real estate industry holds enormous potential for industries like hotels, retail, commercial housing, manufacturing, and many more. For big returns on their investments, investors have the choice of investing in commercial or residential buildings.

Features and benefits of our loan against shares

What is Loan Against Life Insurance Policy? 00:30

What is Loan Against Life Insurance Policy?

Unlock the potential of Loan Against Life Insurance Policy with Bajaj Finance. Learn how it works and its advantages in this informative video.

  • Pre-assigned loan limit

    Pre-assigned loan limit

    Get a pre-assigned loan limit of up to Rs. 5 crore with just 3 documents.

  • Approved shares

    1079 approved shares

    With our comprehensive list of 1079 shares, you can avail loan of up to 50% of your share value. Check the approved list of share.

  • Tenure of to 36 months

    Tenure of to 36 months

    Convenient tenure and repayment options starting from 7 days to 36 months.

  • Continue earning your dividends

    Continue earning your dividends

    You keep earning dividends on your shares while availing loan against it.

  • Only pay interest on loan amount utilised

    Only pay interest on loan amount utilised

    Pay interest on the withdrawn loan amount, for the utilised period. You do not need to pay EMI on the total approved loan.

  • All third part DP shares acceptable

    All third party DP shares acceptable

    All company’s or DPs(depository participants) DEMAT accounts are acceptable with us.

  • Extra credit for increased share value

    Extra credit for increased share value

    If the value of your share increases during the tenure of the loan, the eligible pre-assigned loan limit will increase. Similarly in case the value of share falls, the pre-assigned loan limit will reduce proportionally. This would be subject to “Sanction limit” not getting breached.

  • Swap pledged shares when required

    Swap pledged shares when required

    You have the flexibility to swap the pledged shares at any point of time during the tenure.

  • Dedicated customer portal (My Account)

    Dedicated customer portal (My Account)

    Download your loan statement, release share, and manage your loan online with our customer portal – My Account.

Show More Show Less

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

Documents

  • KYC documents:
    a. Passport
    b. Driving License
    c. Voter’s Identity Card
    d. Aadhaar
    e. Job Card issued by NREGA
    f. Letter issued by the National Population Register
  • 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 las.support@bajajfinserv.in.

How to apply for a loan against shares

Video Image 00:45
   

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

  • Did you know?

    You can avail loan of up to 50% of your share value

  • Did you know?

    You can access funds without selling your shares

  • Did you know?

    You can increase your loan limit by pledging more shares

  • Did you know?

    You can manage your loan online with our customer portal

Applicable fees and charges

The following charges are applicable on loan against securities:

Types of fees

Charges applicable

Interest rate
Up to 20% per annum

Processing fee

Up to 4.72% of the loan amount (inclusive of applicable taxes).

Prepayment charges

Full prepayment - Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment

Part-prepayment - Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment

Annual maintenance charges/ renewal fee

Up to 1.18% (inclusive of applicable taxes) on the sanctioned amount

Bounce charges

Rs. 1,200/- per bounce
“Bounce charges” shall mean charges for non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.

Penal charge

Delay in payment of instalment (as per payment frequency mentioned in the Sanction Letter) shall attract penal charges as more particularly described in Annexure I from the respective due date until the date of receipt of instalment (as per payment frequency mentioned in the Sanction Letter)/principal/overdue amount. To view Annexure I, kindly click here.

Stamp duty (as per respective state)

Payable as per state laws

Brokerage charges*

As applicable at actuals

DP charges**

As applicable at actuals

Pledge confirmation charges**

As applicable at actuals

Pledge invocation charges**

As applicable at actuals

Demat share transfer charges (post invocation)**

As applicable at actuals
Legal charges As applicable at actuals
PG facility charges Rs. 11 (Inclusive of applicable taxes) will be charged for utilizing the payment gateway to make part or full payments towards the loan through digital properties.

*Charges levied by Broker to BFL and the same is being passed on to the clients

**Charges levied by NSDL/ CDSL to BFL and the same is being passed on to the clients

Frequently asked questions

I am looking to apply for a loan against shares. How do I avail it from Bajaj Finserv?

The loan against shares facility available through the Bajaj Finserv app/ web is only applicable for salaried and self- employed customers, to get loan of up to Rs. 5 crore.

We also provide loans against shares up to Rs. 1000 crore to Corporates/ HUF/ LLP/ Partnership/ Trust/ Sole Proprietorship. For this you can reach us at las.support@bajajfinserv.in.

The actual amounts sanctioned would depend upon the credit profile of the applicants, the value of shares pledged etc., at the sole discretion of Bajaj Finserv.

Which shares are accepted under a loan against shares?

You can avail of a loan against shares against 1079+ shares. Click here to view to approved list of shares.

What is the loan-to-value offered against the shares provided?

The loan-to-value currently offered against shares are up to 50% of share value.

Please note that the above are subject to change depending upon the applicable regulations and internal policies of BFL.

What is the tenure of a loan against shares?

The tenure of the loan is from 7 days to 36 months. Any renewal of the loan/ facility shall be at the sole discretion of BFL.

How many scrips are approved for availing a loan against shares?

For sanctioning loans against shares, we have an approved list of 1079 + shares which may be accepted. The list of approved shares may be modified by BFL from time to time as per the internal policies and procedures of BFL.

Whom can I contact in case I need any assistance?

For any assistance with regard to a loan against shares you can write to us at las.support@bajajfinserv.in.

Is it possible to make a part prepayment/ foreclosure before the end of the loan tenure?

Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure. Bajaj levies 4.72% and Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. foreclosure charges.

Can I swap/ change shares during my loan tenure?

Yes, you can swap/ change the shares during the tenure of the loan. Swapping would be allowed within the approved shares list of Bajaj Finance Limited (BFL).

Where can I view the list of shares that are pledged to BFL for availing loan against shares facility?

You can view the list of shares pledged by you to BFL by viewing the IVR (Interim Valuation Report) available under View Statements in the Loan Against Securities service section.

I need more funds against the shares already pledged. How can I raise a request for additional disbursement?

To raise a request for additional disbursement, please choose the 'Disbursement Request’ option in the Loan against Shares Service Section available under the ‘My Relations’ tab.

Please note it is subject to LTV being continued to be maintained with respect to the shares pledged and principal outstanding.

How frequently does the price of my shares get updated in the Bajaj Finserv app/ BFL portal?

For valuation, the price of your shares is updated in the Bajaj Finserv app/ BFL portal every 5 minutes.

What is the frequency of interest payments?

Interest on a loan against shares facility is payable monthly.

Is my interest applicable to the entire loan limit?

No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.

What is the interest payment cycle for a loan against shares?

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 shares is generated on the 7th of every month.

What is Loan to Value (LTV)?

Loan to Value ratio or LTV is the ratio of the loan amount outstanding to the value of pledged shares. 50% LTV is always required to be maintained for loan against shares facility. LTV is subject to changes in regulations. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 business days.

What documents are required for opening a loan against shares account?

Opening a loan against shares account through the Bajaj Finserv App with respect to individual Borrowers and which is subject to successful KYC completion

For easy and smooth onboarding, we recommend keeping the below documents handy:

- PAN card
- Proof of Identity and Address (Aadhaar, Passport, Driving Licence, Voter ID etc.)
- Demat holding statement

What is the process of pledging shares?

Below are the steps to pledge shares:

You can pledge your shares either online or offline. Below are the steps for the same:

Step 1: Reach out to your existing broker for your holding statement
Step 2: Request pledge creation form from your Depository Participant basis the depository (NSDL/CDSL)
Step 3: Fill out the form using the below pledgee details:

Pledgee Name: Bajaj Finance Limited

Pledgee DP Details: Fill in the details of the Depository Participant Account where you maintain your account (either CDSL or NSDL)

Depository DP ID Client ID
CDSL 12088600 00000061
NSDL 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

The final loan amount shall be calculated basis of the effective pledge marked on the shares and the price of the shares.

When will I receive the funds after applying for a loan against shares?

Post successful execution of agreement and additional documents as required by BFL, and creation of pledge of shares, the loan amount will be disbursed to your registered bank account within minimal time.

What happens when the price of my shares falls?

50% LTV is always required to be maintained for loan against shares facility. LTV is subject to changes on account of Regulatory Changes. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 business days.

Further, in case the Loan to Value falls more than 85% then BFL will go ahead with the liquidation of shares with an intimation to the Borrower.

How can I make good the shortfall?

You can repay the shortfall or pledge more shares to make the shortfall good.

What if I am unable to fulfil the shortfall within 7 business days?

In case you fail to fulfil the shortfall within 7 business days, Bajaj Finance Limited holds the right to sell the pledged shares to make good the shortfall.

When can I release my shares?

You can release shares, provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within minimal time post-verification.

What are the minimum and maximum required age for availing a loan against shares?

To avail loan against shares, an individual should be between 18 to 90 years of age.

What is the maximum limit of loan against shares?

The maximum limit for a loan against shares from Bajaj Finance Limited is up to Rs. 5 crore.
This limit is indicative and may vary based on the factors such as the type of shares pledged, the market value of the shares, etc.

Show More Show Less