Loan against share is offered against listed securities. Investors can borrow funds against existing investment portfolios to meet investment and liquidity requirements. The money that the borrower has invested in can get him a loan.
Accordingly, what is the interest rate for loan against shares?
Compare Loan against Securities offered by different banks
| Bank/Lender | Interest Rate |
|---|---|
| ICICI Bank | On the basis of the tenure and the amount withdrawn |
| Tata Capital | 10.50% onwards |
| State Bank of India (SBI) | On the basis of the selected scheme |
| Axis Bank | 10.50% to 12.75% p.a. |
Keeping this in view, can I take loan against SGB?
Loans will be available against Sovereign Gold Bonds held in Dematerialised form with the Depository Participant of NSDL only. In case of demand loan, the disbursement of the loan should be by way of credit in the operative account of the borrower with the Bank.
What is the minimum and maximum loan amount for shares?
One can avail of a minimum loan of Rs 1 lakh and a maximum of Rs 10 lakh for physical shares, and up to Rs 20 lakh for demat shares. The initial tenure is normally a year, but can be taken up for renewal at the end of this period. One can only pledge shares that feature in the bank’s approved list.