Loan Against Securities

You can get Loan Against any of the following Securities at any Bank in India.

- Equity Shares
- Mutual Fund Units(Equity,Debt,FMPs)
- Gold Exchange Traded Fund(ETF)
- NABARD's Bhavishya Nirman Bonds
- RBI Bonds
- Policies issued by LIC & Select Private Insurance Companies
- NSC, KVP and Gold Deposit Certificates

Yes, You can get  a loan against virtually any kind of securities. Here Securities means Paper Assets. You just pledge those papers and take a loan against it.

If you take a loan against your Stock Portfolio (Equity) than still you can enjoy all the right of its ownership and dividends.

Benefits of Loan Against Securities -

• No EMIs
• No Post Dated cheques
• No Pre-payment charges
• Interest charged only on utilised amount.
• Exhaustive number of approved securities
• Upto 80% Loan

Overdraft can be availed against,

• Equity Shares* - Demat Shares up to 50% of the value.
  See approved scrips.
• Mutual Fund units* - Mutual Funds up to 50% of NAV (Net Asset Value). See approved Mutual Fund Schemes.
• Gold ETF
• NABARD's Bhavishya Nirman Bonds
• RBI Bonds (8% Savings Bonds 2003 (Taxable))
• Life Insurance Policies issued by LIC & Select Private Insurance Companies See approved Life Insurance Policies.
• National Savings Certificate (NSC)
• Kisan Vikas Patra(KVP)
• Gold Deposit Certificates (GDC)

Thus, you can pledge any of your paper asset and take a loan against it. For availing the overdraft facility, the securities need not necessarily be in your name. Shares can be pledged from any Depository (NSDL or CDSL) and any Depository Participant across the country.