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HDFC Bank Loan Against Securities | Interest Rates | Documents | Eligibility

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HDFC Loan Against Securities: Get Details on Interest Rates, Documents, EMi and Eligibility on Loan Against Securities of HDFC Bank in India.

Benefits of Loan Against Securities of HDFC

  • Use your investments to get liquidity, without selling them.
  • Get upto 80% loan against the value of your securities. Term loans on select securities offered too!
  • You will have to pay interest only when you actually use the loan.
  • Equity Shares – DEMAT Shares up to 50% of the value.

The securities that you may decide to pledge must be one of the following:

  • Equity Shares.

NOTE: The contribution of single scrip should not exceed 65% of the total portfolio value at any point of time during the tenure of the account. The Loan will be sanctioned as per applicable internal policy of HDFC Bank. Securities should be in the name of eligible borrowers (Securities in the name of minors, Trusts, partly paid up or shares in the name of individuals in companies of which they are Directors/ Promoters cannot be accepted).

  • Mutual Funds (Equity, Debt, FMPs) upto 50% of NAV (Net Asset Value).
  • Gold ETF
  • Gold Deposit Certificates (GDC)
  • RBI Bonds – 8% Savings Bonds 2003 (Taxable)
  • Life Insurance Policies issued by LIC and select Private Insurance Companies. See the approved list of policies here .
  • National Savings Certificates (NSC)
  • Kisan Vikas Patra (KVP)
  • NABARD’s Bhavishya Nirman Bonds
  • Non Convertible Debentures

Eligibility:

Do you want to know which securities you can pledge to get a loan? Whose name should the securities be on? Before answering those questions, first make sure you fit into one of these categories to be eligible for getting a loan against securities:

  • You must be an Indian resident
  • On selected securities, you can get a loan if you are a member of the Hindu Undivided Family (HUF), an NRI, owner of a Sole Proprietorship Partnership firm Private Limited company, Public Limited company (conditions apply).
  • If you are a trust or a minor, the loan against securities cannot be given to you.

Documents you will need to submit:

  • Your Identity proof, signature proof and address proof
  • If you represent Companies/Proprietorships/Partnership firms you will need to submit an audited Balance Sheet, Profit & Loss Account for last two years. You will also have to submit IT returns of the last 2 years.

Other Valuable Details on Loan Against Securities:

Why sell securities if you can simply draw a loan against them? Take maximum benefit of HDFC Bank’s loan against securities which comes with the advantage of paying interest only on the amount and duration of loan used.

  • EMI payments: You don’t have to be hassled about EMI payments. Simply service your Interest payments by way of credits in your account every month Interest is calculated only on the amount of loan you actually use.
  • Extra charges: You will not face the cumbersome process of dealing with post dated cheques or pre payment charges.
  • Approved Securities: There is no limit to your options. We have on offer an exhaustive list of approved securities for you to pledge from.
  • Efficient Servicing: We’re known for speedy and efficient service. You loan processing will take no time.
  • Loan amount: You can avail upto 80% loan on the value of securities pledged.
  • Term Loans: Want a Term loan against securities? No problem. We offer this facility on select securities.
  • Single Scrip Lending service: Get upto 50% of the value with any Depository Participant. Click herefor more details.
  • Limit: You can avail of a minimum loan amount of Rs. 2 lakh.
  • Interest payments: You will have to pay interest only on the amount of loan you use. It will be calculated on the daily outstanding balance and debited to your account at the end of every month.

NOTE: With effect from 1st Jan 2011, the interest rates in Loan Against Securities (LAS) A/cs are linked to Base Rate. Any movement in Base Rate of the Bank would have a similar impact on the Rate of Interest in LAS A/c.

  • Pledging options: You can pledge shares from any Depository (NSDL or CDSL) and any Depository Participant across the country.
  • Options for NRI applicants: Are you an NRI wanting to avail this loan? You can choose from options of shares, mutual funds (equity, debt or FMPs),Gold ETF, Insurance Policies, NSC or KVP.
  • Current Account benefits: A current account with an overdraft limit will be created for you. Hence you can enjoy all the benefits that we offer on the Current Account. You will be able to enjoy some of our popular facilities like Phone Banking, NetBanking,FREE International Debit Card.

NOTE: Please also note that the loan is granted only for personal purposes. The loan amount cannot be used for speculative activities, any purpose linked to capital market activities or for any anti social purposes. All credit provided is at the absolute discretion of HDFC Bank.

Source: HDFC Bank website

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