Applicable fees and charges
The following charges are applicable on loan against securities:
Types of fees |
Charges applicable |
| Interest rate |
8% to 15% per annum |
Processing fee |
Up to 4.72% of the loan amount (inclusive of applicable taxes). |
Prepayment charges |
Full pre-payment -
Part pre-payment -
Sanction amount greater than 5 Cr – Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part pre-payment. |
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 (i) dishonour of any payment instrument; or (ii) 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(s) shall attract penal charge at the rate of 18% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
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 | Recovery of charges |
*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
How to apply for a loan against shares
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Frequently asked questions
Bajaj Finance offers interest rate of 8% to 15% per annum per annum for loan against shares. The final interest rate will depend on the types of shares and value of shares being pledged.
Apart from that there are other fees applicable. Common fees include processing fees, part-prepayment fee, foreclosure charges and many more. These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.
Yes, Bajaj Finance charges a processing fee of up to 4.72% (inclusive of applicable taxes) on loan against shares.
The fees and charges associated with loan against shares are mentioned above. It's important to carefully consider the interest rate and any fees associated with a loan before accepting it to understand the full cost of borrowing and ensure that the terms are reasonable and affordable.
It's unlikely to get a loan against shares at a zero-interest rate. Most financial institutions charge interest on such loans. Bajaj Finance, for example, offers loans against shares with interest rates of 8% to 15% per annum. Interest rates may vary among lenders, but zero interest loans in this context are rare.
Bajaj Finance charges a fee of up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment.
Yes, Bajaj Finance charges a fee of up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of such part-prepayment.
You can check the fees and charges for a loan against shares by visiting the lender’s official website. Look for the “Fees and Charges” section under the loan against securities or shares page for a detailed breakdown, including processing fees, interest rates, and other applicable charges.
Reputed lenders clearly list all applicable charges upfront, including processing fees, foreclosure charges, and interest rates. However, it’s important to read the loan agreement carefully to identify any additional fees such as penal interest, renewal fees, or account maintenance charges.
