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 / RTA to BFL, and the same shall be recovered from clients at actuals
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.
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.
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.
No, you only pay interest on the amount you actually withdraw or use from your sanctioned limit. The unused portion of the loan limit does not attract any interest charges.
Yes, if your loan is on a floating rate, interest may vary with market conditions. Fixed-rate loans remain unchanged. Always check your loan agreement to know whether your loan carries fixed or variable interest rates.
You can reduce the cost by borrowing only what you need, prepaying whenever possible, maintaining strong creditworthiness, and ensuring your pledged shares are high-quality and stable, as these factors may help you negotiate better loan terms.
Yes, if the loan is on a floating interest rate, it may change with market fluctuations or lender revisions. Fixed-rate loans, however, remain constant throughout the tenure.
You can reduce the rate by maintaining a high credit score, choosing a shorter tenure, negotiating with your lender, and repaying on time. Regularly monitoring market rates also helps you switch to better offers.
No. Only approved shares listed on recognised stock exchanges and meeting the lender’s criteria are eligible. Unlisted, delisted, or highly volatile shares are generally not accepted as collateral.
Yes, most lenders allow early repayment or foreclosure. Prepaying helps you save on future interest costs, though some lenders may charge a small prepayment or foreclosure fee.
Disbursal is typically quick often within 24 to 48 hours after approval and share pledge confirmation. Online processes and demat-based pledging can further speed up the turnaround time.
The minimum tenure usually ranges from 7 days to 36 months, depending on the lender’s policy. Borrowers can often choose flexible repayment options suited to their liquidity needs.
