Eligibility criteria and documents required
Anyone can apply for our loan against shares online, as long as they meet the four basic criteria mentioned below. Also keep a few documents handy while applying for Loan against shares.
Eligibility criteria
- Nationality: Indian
- Age: 18 to 90 years
- Employment: Salaried, self-employed
- Security value: Minimum Rs. 50,000
Documents
- KYC documents:
a. Passport
b. Driving License
c. Voter’s Identity Card
d. Aadhaar
e. Job Card issued by NREGA
f. Letter issued by the National Population Register - PAN card
- DEMAT holding statement
Corporates/ HUF/ LLP/ Partnership/ Trust/ Sole Proprietorship can apply for loan against shares of up to Rs. 1000 crore, by reaching us at las.support@bajajfinserv.in.
How to apply for a loan against shares
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Frequently asked questions
The RBI guidelines for availing loans against securities include:
- Approved securities: Only approved shares and eligible securities can be pledged, as per lender’s list.
- Loan-to-Value (LTV) ratio: Maximum LTV is capped at 50% of the value of pledged shares.
- Mode of disbursement: The loan amount must be credited directly to the borrower’s bank account; it cannot be used for further margin trading.
- Demat requirement: Shares must be held in demat form and pledged via depository systems like NSDL or CDSL.
- End use restrictions: Funds cannot be used for investment in capital markets (such as buying more shares).
A lender can provide a loan against equity shares on only those stocks that are included in the lender's official list. Bajaj has a list of 1000+ shares to choose from.
No, a DEMAT account is mandatory as shares need to be pledged electronically through authorized depositories like NSDL or CDSL.
To apply for a loan against shares, you typically need your PAN card, address proof, and demat account details. Additional documents may include a cancelled cheque and recent passport-sized photograph.
Yes, KYC is mandatory. You must complete your KYC verification by submitting valid proof of identity and address as per regulatory guidelines to proceed with your loan against shares application.
No, income proof is usually not required since the loan is secured against your pledged shares. Approval is based on the value and type of securities held.
