Applicable interest rate and processing fees for ESOP Financing
The following charges are applicable on ESOP financing:
| Types of fees | Charges applicable |
| Interest rate | 8% to 15% per annum |
| Processing fee | Up to 4.72% of the loan amount (inclusive of applicable taxes). |
| Prepayment charges | Full prepayment - Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment Part-prepayment - Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment |
| Bounce charges | Rs. 1,200/- per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
| Annual maintenance charges | Up to 1.18% (inclusive of applicable taxes) on the sanctioned amount |
| Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of 24% per annum per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Brokerage charges* | As applicable at actuals |
| DP charges** | As applicable at actuals |
| Pledge confirmation charges** | As applicable at actuals |
| Pledge invocation charges** | As applicable at actuals |
| Demat share transfer charges (post invocation)** | As applicable at actuals |
| Legal charges | Recovery of charges |
*Charges levied by Broker to BFL and the same is being passed on to the clients
**Charges levied by NSDL/CDSL/RTA to BFL and the same is being passed on to the clients
Frequently asked questions
Bajaj Finance offers interest rate of 8% to 15% per annum. for ESOP financing.
Apart from that there are other fees applicable. Common fees include processing fees, part-prepayment fee, foreclosure charges and many more. These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.
The fees and charges associated with ESOP financing are mentioned above. It's important to carefully consider the interest rate and any fees associated with a loan before accepting it to understand the full cost of borrowing and ensure that the terms are reasonable and affordable.
Yes, in some cases, you can negotiate the ESOP loan interest rate, especially if you have a strong credit profile or are borrowing a large amount. However, the final rate depends on the lender’s policies, risk assessment, and prevailing market conditions.
ESOP loans can come with either fixed or floating interest rates, depending on the lender’s offering. Fixed rates remain unchanged throughout the loan tenure, while floating rates may vary based on benchmark rate movements or market conditions. Always clarify the rate type before signing.
The loan tenure for ESOP financing usually ranges from a few months to a few years, depending on the lender’s policies, your employment terms, and the vesting period of your ESOPs.
Yes, taxes apply when ESOPs are exercised or sold. The loan itself is not taxable, but the gains from selling ESOP shares are subject to capital gains tax based on the holding period.
ESOP financing lets you unlock liquidity without selling your shares, so you retain ownership and potential future gains. Selling ESOPs, on the other hand, means permanently parting with your equity.
The maximum loan amount depends on the market value of your vested ESOPs and the lender’s Loan-to-Value (LTV) ratio, typically up to 40% of the share value.
