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      Now no need to keep your long term investments locked. Get Liquidity against your long term investments to maximize your returns. It is also a need of the hour to maximize the returns on investments made by generating cash flow against the securities held, taking further investment calls.

      Besides, exigencies in life could crop up at the most unexpected time. As an investor you would have invested in Securities with a long-term perspective in mind but are left with no other option than to sell the Securities to meet your urgent financial requirements. Stop worrying-IDBI Bank offers Loan Against Securities, which provides liquidity to your Securities without having to sell them.

      Loan Against Securities is provided in the form of an overdraft facility. Pledge your securities in favour of the Bank and the Drawing Power (DP) is calculated based on the applicable margins as given below. Facility is renewable depending on the performance of the account. What makes it more attractive is that you pay interest only on the amount utilized.

Product Features

• Attractive interest rate,
• Approved list of more than 465 scrips,
• Single scrips lending for Nifty and Sensex scrips.,
• Loan value up to 50% against shares,
• Facility for withdrawal or swapping of securities,
• Comprehensive single booklet documentation,
• Interest charges levied at the end of every month only on the amount withdrawn,
• Most convenient mode of advance for the customer as it allows to draw funds when required,
• Overdraft facility against Shares and Mutual Funds.

Frequently Asked Questions

Q. Apart from shares which are other investments against which Loan Against Securities can be availed?

Apart from approved list of Demat shares Loan Against Securities can also be availed against approved list of Mutual Funds, Fixed Maturity Plans and Bonds.

Q. Whose securities can be pledged to avail Loan Against Securities?

One can pledge own securities.

Q. What will be drawing / operating limit one can avail against pledged securities?

Drawing / operating limit can be as high as 50% of the securities pledged (in case of Shares / Equity Mutual Funds). The drawing limit against security of debt mutual funds is higher. Drawing limit can change depending upon the type & proportion in which the securities are pledged as well as the value of securities.

Q. What is the maximum amount of Loan limits one can avail?

An individual can avail a maximum limit of Rs.20 Lacs against the security of Shares / Equity Mutual Funds. This limit is higher for other securities.

Q. For what all purposes can the borrowings be used?

Loan Against Securities can be availed of for any personal and/or business purposes and this has to be declared at the time of origination.