Is it compulsory for my securities to only be in the demat form?

Yes, all the shares must be in the demat form only. Mutual fund units can be in demat or in physical form.

How will the disbursement take place?

An overdraft account will be set up with IIFL Finance Ltd. This account will have a certain drawing limit, which you can utilize as and when required. Drawing limit depends upon the quality and quantity of the security units pledged by you.

How frequently do you revalue my portfolio?

The portfolio will be revalued daily. However, in case of a sharp fall in market prices, an interim revaluation may happen any time.

How long does it take for IIFL to sanction the loan?

The actual time taken to sanction and process the loan depends on the time taken to establish the creditworthiness of the borrower.

Does the ownership of shares get transferred when I pledge the shares with you?

No, the ownership of the shares is retained by the customer.

What is the approved list of securities?

This is the list of shares/ securities approved by IIFL Finance Ltd against which a loan can be availed, subject to predefined hair cut or margin.

What is the minimum margin that I have to maintain?

As per RBI norms, a minimum 50% margin must be maintained on equity shares and mutual funds, For other types of collateral, margins range from 10% to 35%.

What happens when the market value of the security changes?

If the market value drops to a level where the minimum margin is less than stipulated, the borrower must recoup the margin by pledge of additional shares or by cash margin/ part-repayment.