Loan Against Securities - Apply Online for Loan Against Securities at HDFC Bank (2024)

Digital Loan Against Mutual Funds

HDFC Bank is the first Bank to offer, Digital Loan Against Mutual Funds (LAMF). You can pledge mutual fund investments online and get an overdraft limit set in your account. Enjoy the benefits of instant availability of funds, retention of mutual fund returns without liquidation, and more.

WATCH DEMO APPLY NOW

Digital Loan Against Shares


You can also get an instant loan against shares online in 3 easy steps - a complete digital and paperless process.

1. Login to NetBanking, and choose the shares to pledge
2. Accept agreement through a one-time password (OTP)
3. Pledge shares with National Securities Depository Limited (NSDL) & Central Depository Services Limited (CDSL) online by confirming OTP

Your Loan Against Securities (LAS) account is opened instantly. The funds are available for use immediately.

To apply, Demat tab > Request > Loan Against Securities
To know how, watch ademo.


Approved Securities

Get loan against the widest range of collaterals in the industry
Approved list of securities includes:

Equity Shares
Get loan up to 50% of the present value of the Shares

Mutual Funds
Equity Mutual Funds: Get loan up to 50% of the NAV (Net Asset Value)
Debt Mutual Funds/ FMPs: Get loan up to 80% of the NAV

Life Insurance Policies
Get loan up to 80% of the surrender value

National Savings Certificates (NSC)
Get loan up to 70% of the present value

Kisan Vikas Patra (KVP)
Get loan up to 70% of the present value

Bonds
Select PSU Navratna bonds with 10,15- and 20-years maturity ( LTV ranging from 60% to 75%)
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Features
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  • Digital loan against Shares/ Mutual Funds
    Pledge your Shares/ Mutual Funds digitally and get an instant loan in three easy steps. It’s completely automated and paperless.
  • High Loan to Value
    Get a loan worth up to 80% of the value of the securities pledged, with the minimum loan amount of Rs. 50 thousand.
  • Loan End Use
    The HDFC Bank Loan Against Securities is provided only for personal purposes. The loan amount cannot be used for speculative activities, any purpose linked to capital market activities, or for any anti-social purposes. All credit provided is at the absolute discretion of HDFC Bank.
  • Easy Repayment
    Service your interest payments by way of credits in your account every month. The interest is calculated only on the amount of the loan actually used by you.
  • Transparent Processing
    All our charges are communicated up front, at the time of the processing of the loan. HDFC Bank Loan Against Securities comes without any prepayment andforeclosure charges, and relieves you from the stress of dealing with post dated cheques.
  • Quick and Efficient Servicing
    With our doorstep service and efficient servicing processes, your loan will be processed quickly. Our Loan Against Securities has a dedicated help desk, to help you with the entire process.
  • Interest Only on Actual Amount Used
    When you opt to take a Loan Against Securities, you don't need to worry about paying interest on the entire loan amount. You will be charged interest only on the actual loan amount you use. Interest will be calculated on the daily outstanding balance, and debited to your account at the end of every month.

    Note: With effect from 1st Jan 2011, the interest rates in Loan Against Securities (LAS) a/cs are linked to Base Rate. Any movement in Base Rate of the Bank would have a similar impact on the Rate of Interest in LAS a/c.
    W.E.F 1st April 2016 for all new LAS a/cs opened or renewed the interest rates applicable are linked to MCLR (Marginal Cost of Funds based Lending Rate).
    W.E.F 1st October 2019 for all new LAS a/cs are opened with fixed interest rates & all renewals are linked to External benchmark
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  • Single Scrip Lending Service
    Get up to 50% of the value with any Depository Participant.
  • Pledging Options
    You are free to pledge shares from any Depository (NSDL or CDSL) and any Depository Participant across the country.
  • Options for NRI Applicants
    NRIs can choose from options of shares, mutual funds (equity, debt of FMPs), insurance policies, NSC or KVP.
  • Current Account Benefits
    When you opt for an HDFC Bank Loan Against Securities, we will create a current account with an overdraft limit for you. This will allow you to enjoy all the facilities and benefits that come with a current account. You will also have access to features such asPhone Banking,NetBanking
  • Digital Loan Against Shares
    Individual customers who have an existing Demat Account with HDFC Bank can easily apply for a Loan Against Securities through NetBanking. To avail of the loan, simply log in to NetBanking using your Customer ID andIPIN. Click on the Demat Tab, and then click on the Request option on the left hand side of the screen. Finally, click on Loan Against Securities, and select the shares that you'd like to offer ascollateralfrom your Demat Account
    View a demo of the processhere.
    Login toNetBankingand apply now.

Terms & Conditions:

  • Available quantity refers to the free scrips available for pledging.
  • Please note that the Demat holdings shown in your account are as of previous working day. The final loan limit will be based on the value and quantity available at the time of pledging of securities.
  • Minimum loan amount for eligibility is Rs.1,00,000 and the maximum is Rs. 20,00,000. Please adjust the quantity of scrips for pledging in case your limit is not in the range.
  • Please select only Equity shares for pledging.
  • Shares of minimum 2 different companies (differentISIN) need to be pledged. (Single scrip lending also available, kindly refer to our approved list for details)
  • The contribution of any single scrip should not exceed 65% of the total portfolio value at any point of time.
  • In case the Demat account is jointly held, the authorization of the joint Demat account holders would be required. Bank representative will visit you for the sign off.
  • Terms and conditions apply, limit setting subject to documentation being completed and signed off.
  • Credit is at the sole discretion of HDFC Bank Ltd.
Loan Against Securities - Apply Online for Loan Against Securities at HDFC Bank (2024)

FAQs

What is the process of a loan against securities? ›

The process for applying for a loan against bonds or shares typically involves the following steps: Submitting an Application Form: The borrower must submit an application form along with the required documents to the lender. Valuation of Shares: The lender will value the pledge shares to determine the loan amount.

Can NRI take a loan against securities? ›

Yes, NRIs can take a loan against shares or other securities. However, the loan cannot be used for trading or investing. It should be utilized for meeting personal requirements or business purposes.

What is the maximum loan against securities? ›

What are the maximum and minimum limits to avail the Loan Against Securities? The maximum limit is Rs 20 lakh and the minimum limit is Rs 50,000 per market value of the security.

Can I take a loan against my stocks? ›

Lenders typically provide loans secured by shares up to a predetermined percentage of the shares' market value, typically between 50% and 75%. For instance, the lender may issue a loan amount of up to Rs. 7.5 lakh at a maximum loan-to-value ratio of 75% if the borrower pledge shares with a market value of Rs. 10 lakh.

Is a loan against securities a good idea? ›

Lower interest rates

A loan against securities of any type has a lower interest rate than most unsecured loans and credit cards, as it is a secured loan. That means borrowers can pledge the shares as collateral for taking a loan. Depending on your stock list, a loan against shares' interest rate can go as low as 10.5%.

Can I borrow against securities? ›

Securities-based lines of credit. What it is: Similar to margin, a securities-based line of credit offered through a bank allows you to borrow against the value of your portfolio, usually at variable interest rates. Assets are pledged as collateral and held in a separate brokerage account at a broker-dealer.

Can NRI participate in SLB? ›

Yes, NRI, HUF, and Corporate accounts can avail SLB services. However, there are tax implications for NRI.

What is the interest rate of HDFC OD? ›

Features along with Fees & Charges

Minimum amount offered is Rs. 25,000 and maximum Rs. 1.25 lakh. Interest Rate: 15% – 18% p.a.

Can I get a loan in India if I am working abroad? ›

Eligibility for NRI Personal Loans

These loans are typically provided to salaried or self-employed professionals living abroad. In case of salaried professionals, the applicant must be employed in the same company for at least one year. You must provide proof of income to the bank while applying for loans.

What is 100% secure loan? ›

Key Takeaways

Secured loans are loans that are secured by a specific form of collateral, including physical assets, such as property and vehicles, or liquid assets, such as cash. Both personal loans and business loans can be secured, though a secured business loan may also require a personal guarantee.

What is the difference between loan against securities and loan against property? ›

Both the loans are secured and need collateral for sanction of such loan facilities. In a loan against bonds, an individual needs to pledge their bonds for availing of the credit while in the case of a loan against property, the individual needs to mortgage a property.

What type of facility is loan against securities? ›

Loan Against Securities are typically offered as an overdraft facility in your account after you have deposited your securities. You can draw money from the account, and you pay interest only on the loan amount you use and for the period you use it. For example, you are offered a loan against shares of Rs 2 lakhs.

What are the disadvantages of loan against shares? ›

Demerits of Loan Against Shares:
  • Loan to Value (LTV) Lenders make offers based on the value of the shares pledged by borrowers seeking loans against them. ...
  • Companies on the list. ...
  • Selling stocks: ...
  • Unable to sell shares if they are trading at a higher price.

Are loans against stocks taxable? ›

Step 2: Borrow Against Assets

Wealthy family borrows against its assets' growing value and uses the newly available cash to live off or invest in other assets, like rental properties. The family does NOT owe taxes on its asset-leveraged loans because the government doesn't tax borrowed money.

Can I get a loan on my demat account? ›

Loans against demat shares can reach up to Rs. 20 lakhs. These loans usually offer lower interest rates compared to personal loans, typically ranging from 12-18 percent per annum. They do not require guarantors and often have no prepayment penalties.

How does a securities loan work? ›

Securities lending involves the owner of shares or bonds transferring them temporarily to a borrower. In return, the borrower transfers other shares, bonds or cash to the lender as collateral and pays a borrowing fee. Securities lending can, therefore, be used to incrementally increase fund returns for investors.

What is the process of a secured loan? ›

The process of applying for a secured loan

Compare interest rates, terms, and eligibility criteria to find the most suitable option for your needs. Collect all the necessary documents, including proof of identity, proof of address, property information, income details, and collateral documentation.

What is the process of collateral loan? ›

Take these steps to apply for a collateral loan:
  • Gather documentation. ...
  • Compare lenders. ...
  • Submit an application. ...
  • Collateral appraisal. ...
  • Receive loan agreement. ...
  • Begin repayment.
Jul 18, 2023

How to repay a loan against security? ›

To repay your loan against securities (LAS), you have the option of paying monthly instalments that cover both interest and principal amounts. You can also make lump-sum payments to reduce the outstanding loan amount.

References

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