Loan against Securities itself states that it is loan against marketable securities in which customer pledges his investment in favor of lender and borrow fund to meet his financial and personal requirement without selling his investment.
To take care of all your investment (subscribing to primary issues, rights issues, lump-sum investment in mutual funds), personal needs, meet emergency requirements. It is the ideal way to get liquidity without liquidating your assets. You will be the owner of shares enjoying all benefits such as rights, dividends and bonuses. It would make sense to avail of this facility when you are expecting a certain sum of money a few months down the line and you need some funds in the interim.
Following are the features of loan against securities:
1. Unutilized sanction amount* can be disbursed within 3 banking days.
2. Loan can be availed up to Rs. 10 Lakhs
3. Loan Tenor is 12 months
4. Only Interest / EMI is paid monthly on loan amount
5. Facility of swapping (replace) pledged securities
6. Online portfolio access
7. Dedicated Relationship Manager
*Sanctioned amount comprises of disbursed amount and unutilized pre-approved balance.
8. Only outstanding monthly interest is due every month & principal can be repaid any time within 12 months.
9. Completely online process.
Broadly, there are following forms of loans under this category:
A. First phase-
1. Listed shares in demat form
B. Second phase
1. Loan against Unlisted shares
2. Loan against Bonds
3. Loan against Mutual Funds
4. Loan against Insurance Policies*
5. Loan against ESOP financing
6. Loan against IPO financing
7. Loan against Fixed Maturity Bonds/ NSC/KVP
8. Loan against Exchange Traded funds
No lending will be done against:
1. Partly paid up shares
2. Physical shares
3. Lock in shares
4. Scrips in name of minor.
5. Illiquid Stocks
Rudra offers Loan Against Securities for term loan & Flexi Loan. In a term loan, a customer borrows for a certain period like 3, 6, 9 & 12 months and can repay the loan amount at the time of completion of the loan tenure. In a Flexi Loan, a customer can request for repayment as well as disbursement up to his eligibility amount at any time during the tenor of loan.
Yes. You can pledge shares held with any Depository Participant in NSDL or CDSL, with your respective Depository Participants.
You can also open a demat account with Rudra for better convenience.
Following is the details of person avail the LAS facility:
1. An Individual
2. Proprietorship or LLP
3. Private/Public Limited Company
4. Private trust
You will be the owner of your shares and also get to enjoy all your benefits such as rights, dividends and bonuses, while enjoying the additional liquidity.
Yes, you can do the same by providing other securities as a replacement.
Yes. You can avail of limits by pledging the single scrip, if it is part of approved list of single scrips.
Loan can be offered against securities as per below mentioned schedule-3
| Securities | Credit Limit |
|---|---|
| Equity Shares | upto 50% of the present value of the Shares |
| Equity Oriented Mutual Funds | upto 50% of the NAV |
| Debt Oriented Mutual Funds | upto 80% of the NAV |
| Life Insurance Policies | upto 80% of the surrender value |
| Gold Deposit Certificate | up to 70% of the face value |
| National Saving Certificate | up to 70% of the present value |
| Kisan Vikas Patra | up to 70% of the present value |
| NABARD's Bhavishya Nirman Bonds | up to 65% of the present value |
| Non Convertible Debentures | up to 70% of the face value |
| Bond | up to 80% of the surrender value |
You can choose to borrow any loan amount ranging from Rs. 50 Thousand to Rs. 10 Lakhs for individuals.
For a Loan against Securities, Rudra considers the client's profile, valuation of pledge able securities & existing obligations if any, while calculating the loan eligibility amount. On our client portal and/or Relationship Manager can help know the eligibility amount at the time of the personal meeting
You can apply through our online application facility or contact us through various channels, mentioned in the 'Contact Us' section.
With our online application facility, you can apply for a Loan against Shares from wherever you are. What's more, you may get approvals same day or maximum 2 working days.
For all offline applications, you will get approval in 2 working days after the concerned channels receive the form.
All your information is secure with us. The online application is a completely secured application using state-of-the-art security systems.
With our online application facility, you get the benefit of applying from anywhere. You have to fill in some quick details and you will get back a call from our representative shortly.
Post approval of your loan application, your loan will be disbursed within 72 hours. T&C apply
To check on your application status, you can call our Customer Care.
You can find the list of documents in our portal or with customer care.
Your portfolio is valued periodically, and your credit limit varies, depending on the market rate of the shares you have pledged. You may at any time choose to increase your credit limit by pledging more shares, or decrease it by withdrawing them (within the permissible limits).
We revalue your pledged securities on a weekly basis. Additionally, in the event of a sharp fall in the market prices, we conduct an interim revaluation.
Interest is calculated on a daily basis on daily outstanding amount which needs to be repaid on a monthly basis depends on the portfolio and credit score of the customer as well.
Yes, All our loans come with the Part-Prepayment facility. With this, you can part prepay as much as you want during the tenor of loan.
You can choose to foreclose your loan anytime you want after payment of interest and the principal loan amount and any other dues.
Yes. You can release the same after repaying the loan amount to the effect that the margin is maintained as per requirement or you can pledge other Investments.
Ans. 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. You can also repay the loan through our online process.
Initiate a release request to Rudra after repaying the loan amount and interest.
Obtain the Statement online through our online Customer Portal, or contact customer care.
Pledge charges vary from DP to DP. However, the common charge is only Rs.25/- per script of the pledge amount
Rudra has an e-mail alert and SMS alert facility for intimating the latest limit as and when it changes due to revaluation of prices or lodgment / withdrawal of shares.
You can call our Customer Contact Centre to know the status of your account, details of the securities pledged, amount obtained against different securities, details of shortfall (if any), etc.
Yes, it can be renewed atleast 15 days prior to expiry subject to approval.
In case of any query contact @ _______________ or drop your mail at info@rudra.co and visit www.rudrafincorp.com .
The interest rate for LAS loan is 16%. The interest rate is not constant and is subjected to change depending on the prevailing economic situation.
Rudra Fincorp - List of charges
| Processing Fee for each Loan | (Rs.2499/- or 2% P.A.) whichever is higher |
|---|---|
| Pledge (per scrip) | Rs.25/- |
| Unpledge (per scrip) | Rs.25/- |
| Invocation of Pledge | Rs.25/- |
If you miss repaying the interest amount or if you partially repay the interest amount, a penalty will be levied on the defaulted amount. The penalty is dependent on the 'Penal interest rate'.
The penal interest rate is 3% per month
RBI only permits a particular list of Group 1 securities to be allowed for collateralising for a loan by NBFCs.
Yes, Rs.2499/- or 2% P.A. of the sanctioned amount whichever is higher
The due date to make repayment with respect to your monthly outstanding amount / interest is the 3% of every month at Rudra Fincorp.
No, you will not receive any taxation benefits with respect to the interest repaid on the loan with respect to LAS.
No, currently we offer LAS only for Resident Indian Individual Accounts.