Documents Required for Loan against Securities – IIFL

Process and Documents Required

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For your assistance, we have listed down the required documents below:
  • KYC documents as per RBI guidelines (address and ID proof)
  • Bank statements
  • Latest audited financial statements and ITR
  • Pledged security details

FAQs

You can repay the loan at any point of time during the loan tenure by repaying the due interest and principal loan amount through RTGS/ NEFT/ cheque.

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Yes. You can pledge shares held with any depository participant in NSDL or CDSL

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Yes, a customer can avail a loan by pledging third party shares post fulfillment of the relevant documentation requirement.

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Yes. A customer can release the same after repaying the loan amount to the effect that the margin is maintained as per the requirement.

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

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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.

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

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

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

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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.

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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%.

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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.

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