Loan Against Shares FAQs

The tenure of the loan is 7 days to 36 months. Any renewal of the loan/facility shall be at the sole discretion of BFL. 

For sanctioning loans against shares, we have an approved list of 1100 + shares which may be accepted. The list of approved shares may be modified by BFL from time to time as per the internal policies and procedures of BFL.

For any assistance with regard to a loan against shares you can write to us at las.support@bajajfinserv.in

Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure. Bajaj levies 4.72% pre-payment and Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. foreclosure charges.

Yes, you can swap/ change the shares during the tenure of the loan. Swapping would be allowed within the approved shares list of Bajaj Finance Limited (BFL).

You can view the list of shares pledged by you to BFL by viewing the IVR (Interim Valuation Report) available under View Statements in the Loan Against Securities service section.

To raise a request for additional disbursement, please choose the 'Disbursement Request’ option in the Loan against Shares Service Section available under the ‘My Relations’ tab.

Please note it is subject to LTV being continued to be maintained with respect to the shares pledged and principal outstanding.

For valuation, the price of your shares is updated in the Bajaj Finserv app/ BFL portal every 5 minutes.

Interest on a loan against shares facility is payable monthly.

No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.

The interest cycle is calculated from the 7th day of each calendar month to the 6th day of the succeeding month. Interest due towards a loan against shares is generated on the 7th of every month.

Loan to Value ratio or LTV is the ratio of the loan amount outstanding to the value of pledged shares. 50% LTV is always required to be maintained for loan against shares facility. LTV is subject to changes in regulations. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 business days.

Opening a loan against shares account through the Bajaj Finance platform with respect to individual borrowers and which is subject to successful KYC completion.

For easy and smooth onboarding, we recommend keeping the below documents handy:

• PAN card
• Proof of Identity and Address (Aadhaar, Passport, Driving Licence, Voter ID etc.)
• Demat holding statement

Below are the steps to pledge shares:

You can pledge your shares either online or offline. Below are the steps for the same:

Step 1: Reach out to your existing broker for your holding statement

Step 2: Request pledge creation form from your Depository Participant basis the depository (NSDL/CDSL)

Step 3: Fill out the form using the below pledgee details:

Pledgee Name: Bajaj Finance Limited

Pledgee DP Details: Fill in the details of the Depository Participant Account where you maintain your account (either CDSL or NSDL)

Step 4: Submit the form to your existing broker with the details

Step 5: Once the shares are pledged, the loan will be disbursed

The final loan amount shall be calculated basis of the effective pledge marked on the shares and the price of the shares.

Post successful execution of agreement and additional documents as required by BFL, and creation of pledge of shares, the loan amount will be disbursed to your registered bank account within minimal time.

50% LTV is always required to be maintained for loan against shares facility. LTV is subject to changes on account of Regulatory Changes. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 business days.

Further, in case the Loan to Value falls more than 85% then BFL will go ahead with the liquidation of shares with an intimation to the Borrower.

You can repay the shortfall or pledge more shares to make the shortfall good.

In case you fail to fulfil the shortfall within 7 business days, Bajaj Finance Limited holds the right to sell the pledged shares to make good the shortfall.

You can release shares, provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within minimal time post-verification.

To avail loan against shares, an individual should be between 18 to 90 years of age.

If you have a minimum of Rs. 50,000 shares in your demat account, you can apply for a loan against shares with Bajaj Finance. Against the shares you can get loan amount ranging from Rs. 10,000 to Rs. 5 crore.

You can apply for loan against shares by clicking on the ‘Apply' button on this page. Fill in your personal details, and the value of your shares. Accordingly verify your details through an OTP.

Corporates/ HUF/ LLP/ Partnership can apply for loan against shares of up to Rs. 1000 crore, by reaching us at las.support@bajajfinserv.in

A loan against shares (LAS) is a type of loan where the customer pledges their shares as collateral to obtain a loan from Bajaj Finance. The process of obtaining a loan against shares typically involves the following steps:

a. Evaluation of shares: The lender will evaluate the shares that the borrower wants to pledge as collateral. The lender will consider the value of the shares, the market conditions, and the risks involved.
b. Loan amount: Based on the evaluation of the shares, Bajaj Finance will determine the maximum loan amount that can be provided. Bajaj Finance offers loan up to 50% of the market value of the shares.
c. Loan terms: The borrower and Bajaj Finance will agree on the terms of the loan, including the interest rate, repayment period, and any other conditions.
d. Pledge of shares: The borrower will pledge the shares as collateral with Bajaj Finance, corresponding to which the loan amount will be disbursed to the borrower.
e. Repayment: The borrower must repay the loan amount along with the interest within the agreed-upon period. If the borrower fails to repay the loan, Bajaj has the right to sell the pledged shares to recover the loan amount.

In summary, a loan against shares provides a way for borrowers to access funds while still retaining ownership of their securities

Bajaj Finance offers interest rate of up to 20% p.a. for loan against shares. The final interest rate will depend on the types of shares and value of shares being pledged.

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.

Yes, Bajaj Finance charges a processing fee of up to 4.72% of the loan amount (inclusive of applicable taxes).

The fees and charges associated with loan against shares 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.

A loan against shares is a type of loan offered by banks and financial institutions, where a borrower can pledge their shares as collateral to obtain a loan. Here are some of the features of a loan against shares:

• Collateral: Loan against shares is a secured loan where shares are used as collateral. The amount of loan depends on the value of the shares pledged.
• Loan amount: The loan amount is typically a percentage of the market value of the pledged shares. For Bajaj Finance it is up to 50% of the market value of the shares.
• Repayment: The borrower can repay the loan amount in EMIs (equated monthly installments), which includes both principal and interest.
• Prepayment: Bajaj allows the borrower to prepay the loan amount before the due date at up to 4.72% of the loan amount (inclusive of applicable taxes).

For loan against shared with Bajaj Finance, you can pledge over 1100 shares from 40+ AMCs.

Click here to check the list of approved shares.

A loan against shares is a type of loan that allows individuals to borrow money by pledging their shares or securities as collateral. Here are some benefits of taking a loan against shares:

• Lower interest rates: Since the loan is secured, lenders usually offer lower interest rates compared to unsecured loans. The interest rates are determined based on the value of the shares, the loan amount, and other factors.
• No need to sell shares: By pledging shares as collateral, the borrower can get access to funds without having to sell their shares. This can be beneficial in case the borrower is holding shares that are expected to appreciate in value.
• Flexible repayment options: The repayment options for loan against shares are usually flexible, allowing borrowers to choose a tenure that suits their needs.
• Interest only on utilised amount: Of the total assigned limit against your shares, the customer has the option to withdraw only the required amount, and interest is paid only on the withdrawn amount.
• Multipurpose use: The funds obtained through a loan against shares can be used for various purposes like funding a business, purchasing a property, financing education, medical expenses, etc.

The eligibility criteria for loan against shares with Bajaj Finance are:

• You must be an Indian citizen.
• Your age should be between 18 to 90 years.
• You must either be Salaried, or self-employed.
• You must have a minimum security worth Rs. 50,000.

To apply for loan against shares, click on the ‘Apply’ button on the page. You will be redirected to our form, where you will have to fill your personal details and the value of your shares.

Once all your details have been verified through an OTP, sent on your phone, our representative will contact you for further processing of your application.

Through the loan against shares by Bajaj Finance, you can get a pre assigned loan of Rs. 10,000 to Rs. 5 crore.

All individuals: both self employed or salaried are eligible for online loan against shares with Bajaj Finance.

Corporates/ HUF/ LLP/ Partnership can apply for loan against shares of up to Rs. 1000 crore, by reaching us at las.support@bajajfinserv.in.

The documents required to apply for loan against shares with Bajaj Finance are:

• PAN Card
• One KYC documents from Aadhaar, passport or voter’s ID
• Demat holding statement that gives an account of the shares and securities you have traded in a given period.

We have formed partnerships with the following registered agents.

• NJ Capital Private Limited
• Prudent Corporate Advisory Services Limited
• Smallcase Technologies Private Limited
• Salter Technologies Private Limited
• Fifty Fintech Private Limited