Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
What are the common charges I have to pay while going for Loans against
Shares?
Besides the interest rate; banks usually charge 1-1.5% on the loan amount
sanctioned as processing fees.
If you are an existing customer of the bank,the processing charges might be
lowered for you.
For example if have IDBI Bank as your DP and you take a loan against Share from
them the processing fees is .5% whereas for those who have DPs other than them
you have to pay 1.5%
Besides the processing fees,one might have to pay documentation charges(varies
from bank to bank).
The limit depends on the valuation of the security, applicable margin, your ability to
service and repay the loan and other conditions as applicable from time to time
- Grandparents
- Grandchildren (above 18 years of age)
Many banks do not accept third party shares. So check out the individual schemes
at myiris.com loan section.
My shares are in your approved list - but they are in physical form. Can
they be pledged?
Many banks accept physical shares but the finance you get for it is lower than what
you would have got if you had pledged demat shares. You can avail of a facility up
to 50 % of the value of your physical shares subject to a maximum of Rs 10 lakhs
.There are many advantages of getting your shares dematerialized. The government
is encouraging all investors to dematerialize their shares.
Standard chartered bank charges 18.5% for loan against physical scrips while it
charges 17.5%for loan against demat scrips.
For physical scrips , HDFC Bank charges 17.5% for loan amt from 100000 to 500000
and for loan amount from 5 lakh to 10 lakh it charges 17% on physical scrips.
For demat scrips,HDFC Bank charges 17.5% for loan amt from 100000 to
500000.And for loan amount from 5 lakh to 10 lakh it charges 17% And for loan
amount above 10 lakh,it charges 16.5%
For most of the banks, interest rate range varies from 15% to 18.5% You will also be
charged an additional 2 % interest p.a. on the amount by which your outstandings
exceed the limit and for the period it is in excess.
Covering letter from the company received by the shareholder at the time of
transfer.
For shares in physical form
Share certificates
Signed and valid transfer deeds (not more than a month old).
Photocopies of dividend warrants of shares and units to be pledged.
Allotment letter for rights or bonus shares from the company, or broker contract
note specifying share certificate and distinctive numbers.
Covering letter from the company received by the shareholder at the time of
transfer.