Introduction to LAS

LAS is a facility that allows customers to borrow funds by pledging securities such as shares, mutual funds and bonds. The facility can be availed by pledging securities held in demat with any DP. LAS can also be availed against mutual funds purchased directly or that are in the RTA mode.

The facility can be availed by pledging securities held in demat with any DP.

LAS can also be availed against mutual funds purchased directly or that are in the RTA mode.

Features of LAS

  • Allows you to borrow funds for immediate/short-term requirements against your investments in financial Securities

  • While you use this facility to fulfil your immediate/short term requirement, you continue to enjoy the benefits from the appreciation of your portfolio/investments

  • Ownership of your investments remain with you-Securities are pledged in your demat account itself and are not transferred to any other account, hence you continue to receive dividend/income from investments

Benefits of availing LAS from us

  • The facility works like an overdraft facility

  • No EMI's - only interest needs to be serviced every month

  • Interest is calculated on the amount utilized and for the period it has been utilized for

  • No pre-payment charges, no lock-in period

  • Online account access

  • Dedicated Relationship Manager

  • Easy switching of pledged securities with other securities

  • Quick disbursal - within 3 - 4 hours of the disbursement request placed

  • Over 800 securities on approved list

Product offering

Parameters Norms
We lend to
  • Individuals (Resident Indians)
  • Corporate (Indian Registered)
  • HUF & Partnerships (Indian Registered)
Age criteria Individual should be atleast 18 years old
Non-individual entity should be atleast 1 year old
Tenure 12 months-Renewal after 12 months with mutual consent
Loan amount Minimum amount - 50k
Maximum amount - up to 50 crores
Loan to value Equity - 50% max
Debt - 70% - 90% depending on the nature of securities being pledged
Interest calculation Interest shall be calculated on daily basis and debited on the last day of the month
Interest repayment due date 10th of every month
Interest reset clause 30 days
Margin Shortfall (refer FAQs for detailed meaning) To be regularised within 7 working days either by repaying the shortfall amountOR pledging securities of 2x value OR by squaring off the securities to the extent of the shortfall amount

Rate of interest, Fees & Charges

Rate of Interest Between 8% to 15% per annum
Processing fees Between 0.50% to 1% of the sanction amount + taxes
Penal interest charges 2%
Foreclosure/Prepayment Charges Nil
Renewal Charges Nil

Documentation : Individual

  • Application form duly filled and signed

  • Aadhaar card & PAN card (can also serve as a residence proof)

  • Other residence proof accepted (any one)

    1. Passport

    2. Voter ID

    3. Driving License

    4. Masked Aadhar Card

    5. NREGA Job Card

    6. National Population Register Letter

    7. E-KYC Authentication

  • 1 passport size photographs

  • Latest 2 yrs Income Tax returns OR form 16. For loan amount above 1 cr detailed financials for 2 years will be required

  • Bank statements

  • Demat holding statement OR Client Master List

  • 2 Security cheques

  • Cancelled cheque and a pledge form

Additional Documents : Non- Individual

  • 2 years audited financials

  • Networth certificate from the CA

  • MOA & AOA

  • Board Resolution/List of Directors/ List of Shareholders (as required in our formats)

FAQs

What is purpose of Loan Against Securities ?

Loan Against Securities itself states that it is Loan Against Marketable Securities in which customer pledges his investments in favour of lender and borrow funds to meet his financial and personal requirement without selling his investment.

The purpose is to take care of all investment as well as personal needs and meet contingencies. It is the ideal way to get liquidity without liquidating your investments. 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

I don't have a Demat account with Sharekhan, can I still avail Loan Against Securities from Sharekhan?

Yes. You can pledge shares held with any Depository Participant in NSDL or CDSL

Can I get a loan against all the shares held by me?
Sharekhan has its approved list of scrips and it lends only against those scrips
What is the Loan to Value (LTV)?

For loan against shares or equity linked mutual funds LTV starts from 30% till 50% depending on the your requirement.

LTV for loan against debt mutual funds or bonds starts from 60% to 90% depending on the type/class of securities.

Can I foreclose my Loan Against Securities a/c?

You can choose to foreclose your loan anytime you want, after payment of interest and the principal loan amount. There are no charges for foreclosure

Can I repay my loan in part? What are the charges that would apply?

Yes, you can part prepay as much as you want during the tenor of loan without any charges

Is my overdraft limit fixed?

This will completely depend on the market rate of the securities that you have pledged. We will value your portfolio periodically to determine your overdraft limit. You can increase your overdraft limit by pledging more shares/securities, or decrease limit by de-pledging some of them that's completely up to you.

Can I release pledged shares / securities partly?

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

How can I release my pledged securities?

You can initiate a release request through your DP after repaying the loan amount and interest to Sharekhan

What is the process of repaying my loan?

You need to transfer the outstanding amount in favor of "Sharekhan BNP Paribas Financial Services Limited" in any one of the following bank

BANK NAME ACCOUNTS NO. CMS Code - Cheque IFSC CODE NAME & ADDRESS OF THE BANK
HDFC BANK 00602740001139 SFSL1139 HDFC0000060 HDFC Bank Ltd., Manekji Wadia ?Bldg.,Ground Floor,Nanik Motwani Marg,Fort,Mumbai - 400023

NEFT / RTGS transfers

To initiate NEFT/RTGS transfers to Sharekhan BNP Paribas Financial service, you need to register the below mentioned beneficiary details to your bank account for faster credits.

Bank Name: HDFC Bank

IFSC Code: HDFC0000060

Beneficiary Name: Sharekhan BNP Paribas Financial Services Ltd

Branch: Fort, Mumbai

Account Type: Current Account

Beneficiary Account NBFC
Separate account details for each segment SHFISR+ Liger Code
Example: If your *client code is XXXX, the beneficiary number will be SHFISRXXXX

Post you have deposited a cheque and / or transferred funds kindly send us an email on sfslcollection@sharekhanfinance.com and on las@sharekhan.com with details of your account & amount transferred/repaid, the same will be posted to client ledger.

How would I pay the interest on my Loan Against Securities every month?

You need to transfer the interest amount in favor of "Mirae Asset Sharekhan Financial Services Limited" in the bank account mentioned in point 10.

Post you have deposited a cheque and / or transferred funds kindly send us an email on sfslcollection@sharekhanfinance.com and on support@sharekhanfinance.com with details of your account & amount transferred/repaid, the same will be posted to client ledger. You need to transfer the outstanding amount in favor of "Mirae Asset Sharekhan Financial Services Limited"

Do I get statements for my account?

You can access your statement on portal or mail at support@sharekhanfinance.com or you can call us on 02233054800.

What is the minimum loan value?

The minimum loan value is Rs. 50k.

How frequently will my portfolio be re-valued?

We do that on a daily basis and incase of a fall in the market price and a shortfall in your account, you will be informed via an email and a phone call to fulfill the shortfall either by repaying principal or by pledging more stocks as per our approved list.

Would the shares be held in my name?

Yes, shares will remain in your name. A loan against security lets you reap your regular benefits from shares such as rights, dividends and bonuses whilst you take a loan against them.