Loan against Securities FAQs

 

 

The purpose of Loan against Securities is to take care of all your investment as well as personal needs, and to help you meet your contingencies.

  • Ease of documentation
  • Ease of drawing
  • Ease of repayment
  • Competitive interest rates
  • Clear communication
  • Flexible loan tenure

All our loans come with the part-prepayment facility. With this, you can part prepay as much as you want during the tenor of the loan.

No, currently India Infoline Finance Limited only deals in approved list of securities as selected by the company.

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

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

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

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

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

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

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

You will be charged a nominal processing fee. The interest will be charged only on the amount you draw and for the period that you draw it. Also, the interest will be charged on a daily basis, but will be debited to your account only once a month/quarter.

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

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

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

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%.

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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