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.
