LAS
Loan Against Shares
Leverage your investments in shares for loans to satisfy unforeseen expenses!! Avail of loans up to Rs.20.00 lacs against your shares to modify you to satisfy contingencies, personal requirements or maybe for subscribing to rights or new issue of shares. Every business requires funding from time to time. Whether to upgrade operations or purchase new premises, business loans facilitates corporates in taking a better leap towards progress. Whether your business is little or giant, you will need associate degree of influx of funds to require your operations to the next stage of success. However, you'll contemplate swing your securities within the capital market to use. Instead of monetizing your investments in securities, why not take a Loan Against Shares (LAS) also known as Loan Against Securities or a Line of Credit (LOC) and leverage your investments.
HOW DOES LOAN AGAINST SHARES WORK?
The Loan Against Shares is a term loan against equity shares you own. It helps you gain the financial flexibility that you just would like while not disrupting your long-run investment strategy. In terms of your fiscal position, Loan Against Securities is a better option to explore instead of bringing your investments in other securities like property and gold in the ambit of loans – the shares you own can generate loans for your business.
HOW DOES LINE OF CREDIT (LOC) WORK?
LOC (Line of Credit) is an overdraft facility against your marketable securities. You can draw on this line of credit at any time, but you cannot exceed the maximum limit set by us. The advantage of LOC is that you pay interest only for the actual time period when your business finance is used.
WHY DO YOU NEED LAS OR LOC?
If you are a business owner requiring immediate funds, LAS or LOC is the most appropriate financing solution for you. Businesses with expansion plans, or those requiring funds to procure additional manpower, machinery and tech expertise to scale operations should consider Loan Against Securities. Additionally, salaried people who are in need of immediate liquidity might also want this finance answer. Loan Against Securities may also be taken for personal reasons as well – consider it in lieu of loan for marriage or for your child's education. An advantage to note is that as long as you hold sufficient eligible securities to use as collateral, this type of credit line may be easier to obtain and it is more cost-effective than other alternatives.
FEATURES OF LOAN AGAINST SHARES/LINE OF CREDIT
- You do not need to sell your stocks. You simply pledge them to IFSL (International Financial Services Limited) for up to 365 days.
- There is immediate liquidity pending scrutiny of shares.
- The bonuses and dividends on the pledged shares will continue to accrue to you during the loan period.
- You can renew the corporate loans at your discretion.
- You do not require a guarantor to avail of Loan Against Shares.
- These loans typically attract bottom interest rates than any other forms of credit.
- There are no set-up, non-use, or cancellation fees.
Eligibility:
Loan can only be availed in single name. At present, NRI’s are not eligible for this loan.
Purpose:
For meeting contingencies and needs of personal nature. Loan are permissible for subscribing to rights or new issue of shares against the safety of existing shares.
Loan won’t be sanctioned for (i) speculative functions (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies.
Loan Amount:
Minimum Loan Amount: Rs 50,000/-
Maximum Loan: Rs 20.00 lacs
(Loans against shares to not exceed Rs 10 lacs if the aim is for subscribing to IPOs.)
Repayment Schedule:
Demand Loan: To be liquidated in most amount of 30 months
Overdraft: Active Overdraft (subject to renewal every year)
Nature of Loan:
Overdraft / Demand Loan
Margin
You will ought to give a margin sum of 50% of the prevailing market costs of the shares being offered as security.
Security:
Pledge of the demat shares against that which loan is sanctioned.
Features and benefits:
Loan up to 50% with respect to the value of shares
EMI-based repayment or interest only payment options
Instant credit
Attractive interest rates
Shares can be promised from any Depository participant across the country
Simple and hassle-free.
Salaried Individuals
Including all salaried Doctors, CAs, employees of select public and private limited companies, Government sector employees including public sector undertakings.
Eligibility Criteria:
- Applicant should have completed minimum of 21 years of age.
- Applicant must attain a maximum age of 58 years (60 years for Central Government employees) at the time of maturity of loan.
- Applicant must be employed for a minimum time period of 3 years in total and a minimum 1 year in the current organization.
- Applicant must draw a minimum net monthly wage of Rs. 10,000 for Metro Locations (Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune) & Rs. 7,500 per month for All Other Locations.
Self-employed (Professionals)
Including all self-employed Doctors, Chartered Accountants, Architects and Company Secretaries.
Eligibility Criteria:
- Applicant should have completed minimum of 21 years of age.
- Applicant must attain a maximum age of 65 years at the time of maturity of loan.
- Applicant must be employed for a minimum time period of 4 years with at least 2 years in the same business.
- Applicant must draw a minimum net monthly wage of Rs. 20,000 for Metro Locations (Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune) & Rs. 15,000 for All Other Locations.
Self Employed (Individuals)
Which including Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services.
Eligibility Criteria:
- Applicant should have completed minimum of 21 years of age.
- Applicant must attain a maximum age of 65 years at the time of maturity of loan.
- Applicant must be employed for a minimum time period of 4 years with at least 2 years in the same business.
- Applicant must draw a minimum net monthly wage of Rs. 20,000 for Metro Locations (Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune) & Rs. 15,000 for All Other Locations.
Self Employed (Private Companies and Partnership Firms)
Which including all Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services.
Eligibility Criteria:
- Applicant must be employed for a minimum time period of 4 years with at least 2 years in the same business.
- Business must be in a profit for the last 2 years.
- Applicant must draw a minimum net monthly wage of Rs. 20,000 for Metro Locations (Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune) & Rs. 15,000 for All Other Locations.
Salaried Individuals
which includes Salaried Doctors, CAs, employees of select public and private limited companies, Government sector employees including public sector undertakings:
Documents required:
- Applicant should be able to produce (Passport / Voters ID / Driving License/PAN Card) for identity proof.
- Applicant should be able to produce (Ration card /Driving License/ Voter ID / Utility Bill (any one, within the last 3months) / Registered Rental Agreement / Passport) as residence proof.
- Applicant should be able to produce (Driving License / PAN Card / Passport / Birth Certificate / 10th or 12th mark sheet which bears the date of birth) as DOB proof.
- Applicant should be able to produce (The latest 3-month bank statement / 6-month bank passbook).
- Applicant should be able to produce latest 2 months’ salary slip, along with latest Form 16 / ITR / Appointment Letter.
Self-employed (Professionals)
Which includes self - employed Doctors, Chartered Accountants, Architects, and Company Secretaries.
Documents required:
- Applicant should be able to produce (Passport / Voters ID / Driving License/PAN Card) as identity proof.
- Applicant should be able to produce (Ration card /Driving License/ Voter Id Card/ Utility Bill (anyone within the last 3months) / Registered Rental Agreement / Passport / Trade license /Est./Sales Tax certificate) as residence proof.
- Applicant should be able to produce (Driving License / PAN Card / Passport / Birth Certificate / 10th or 12th mark sheet which bears the date of birth) as a proof for DOB.
- Applicant should be able to produce (latest 6 months bank statement / passbook.
- Applicant should be able to produce latest ITR along with computation of income, Balance Sheet & Profit &Loss account for the last 2 years certified by a CA.
Self Employed (Individuals)
Which includes Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services.
Documents required:
- Applicant should be able to produce (Passport / Voters ID / Driving License/PAN Card) as identity proof.
- Applicant should be able to produce (Ration card /Driving License/ Voter's ID / Utility Bill (anyone within the last 3months) / Registered Rental Agreement / Passport / Trade license /Est./Sales Tax certificate).as residence proof.
- Applicant should be able to produce (Driving License / PAN Card / Passport / Birth Certificate / 10th or 12th mark sheet bearing date of birth) as a proof for DOB.
- Applicant should be able to produce bank Statements (latest 6month bank statement /passbook) as a proof of bank account statement.
- Applicant should be able to produce latest ITR along with computation of income, Balance Sheet & Profit & Loss account for the last 2 years certified by a CA for continuation proof.
- Applicant should be able to produce other Mandatory Documents (Sole Proprietary Declaration or Certified Copy of Partnership Deed, Certified Copy of MOA, AOA & Board resolution.)
Self Employed (Private Companies and Partnership Firms)
Which includes Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services.
Documents required:
- Applicant should be able to produce (Utility Bill (anyone within the last 3months) / Registered Rental Agreement / Trade license /Est./Sales Tax certificate) as a residence proof.
- Applicant should be able to produce Bank Statements (latest 6 months bank statement /passbook).
- Applicant should be able to produce latest ITR along with computation of income, Balance Sheet & Profit &Loss account for the last 2 years certified by a CA as a continuation proof.
- Applicant should be able to produce (Trade license /Establishment /Sales Tax certificate/ SSI Registration) as a proof of continuance.
- Applicant should be able to produce other Mandatory Documents (Sole Proprietary Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original).
FEES
- Processing Fees: Nil
- Review Charges
- Rs 1000 + applicable Tax (Applicable just for Overdraft A/c)