Frequently asked questions
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:
a. 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.
b. 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.
c. Repayment: The borrower can repay the loan amount in EMIs (equated monthly installments), which includes both principal and interest.
d. 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against your shares, the customer has the option to withdraw only the required amount, and interest is paid only on the withdrawn amount.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.
