Loan Against Securities By HDFC Bank

Get loan against the widest range of investments without selling them!

Getting a Loan Against Securities couldn't get easier with minimal documentation and speedy disbursals.

Features

  • Widest Range of collateral accepted in the industry
  • Scan based account opening
  • Overdraft and Term Loan available
  • Combines the power of Loan and bank account

Benefits

  • Anytime, anywhere access
  • Auto Renewal of loan facility
  • No Prepayment penalty
  • Dedicated LAS Helpdesk

Bank approved Securities list

  • Equity Shares – DEMAT Shares up to 50% of the value. See the approved scrips here.
  • Approved Mutual Funds- See approved Mutual Fund Schemes here.

 

Experience seamless investing with a 3 in 1 Account. Invest with ease, security and speed.

 

Why take a Loan Against Securities from HDFC Bank?

Whatever be your need we have a loan for you. Over the years we have won the trust of our customers and have become market leader in loan products.

Enjoy triple benefits when you take a Loan Against Securities from HDFC Bank:

  • Faster loan - Our loan sanction and disbursal is one of the quickest with easy documentation and doorstep service.
  • Competitive pricing – Our loan rates and charges are very attractive
  • Transparency – All charges are communicated up front in writing along with the loan quotation

Features and Benefits of 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. Check with an HDFC Bank branch near you.
  • Single Scrip Lending service: Get upto 50% of the value with any Depository Participant. Click here for 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), 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.

List of bank approved securities against which you can get a loan

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 Deposit Certificates (GDC)
  • 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 and Documentation of Loan Against Securities

Get details on eligibility criteria & documents required for HDFC Bank Loan Against Securities

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, (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.

NOTE: Please 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.

 

Loan Against Securities Interest Rates & Charges

 

Enclosed below are HDFC Bank Loan Against Securities Interest Rates & Charges

Overdraft Facility

Description of Charges
Quantum of Charges

Annual Maintenance Charge ( AMC)*
Upto 0.50% of the sanctioned credit limit , minimum Rs.1000 and maximum Rs.10000

Processing Fee/Loan Processing Charge*
Upto 1% of the Loan/Sanctioned credit limit.Minimum Rs. 2000/- (Non refundable)

Stamp duty & other statutory charges
As per the rates applicable at the place of execution of Loan Agreement

Charges on drawings in excess of Limits ( due to application of interest or revaluation of portfolio under pledge)
Penal interest Upto 18% p.a. plus tax on the amount drawn in excess of the Limit. This will be calculated on a daily product basis and levied on a monthly basis.

Dormant Account Penalty/Charges in case limit drops to Zero*
Upto Rs.1000 per month where limits are nil in the month

CIBIL Charges
Upto Rs 50 per instance

Charges for changing from fixed to floating rate of interest
Not applicable

Charges for changing from floating to fixed rate of interest
Not Applicable

No Due Certificate / No Objection Certificate (NOC)
Nil

Duplicate no due certificate / NOC
Nil

Solvency Certificate
Not Applicable

Pre-payment charges*
Upto Rs. 1000/- in case the facility is taken over by another bank during the tenor of the loan.
Loans prepaid from own sources will not attract prepayment penalty

Cheque Book Charges
Upto 100 Cheque leaves issuance FREE per month.

TRF (Transaction Request Form) Processing Charges*
Upto Rs.10/- Per TRF

Pledge creation fees*
Upto Rs.5/- per NSC/KVP/Bond/Insurance Policy/MF Unit Certificate

De-pledge fees*
Upto Rs.5/- per NSC/KVP/Bond/Insurance Policy/MF Unit Certificate on release of charge (de-pledge, lien removal etc).

Charges for realization of proceeds on maturity/redemption in respect of Fixed Maturity Plans (FMPs)*
Upto Rs. 1000/- per instruction

Charges for realization of proceeds on maturity in respect of RBI Bonds*
Upto Rs. 100/- Per Certificate subject to a minimum of Rs. 250/- per request

Charges for collection of Maturity Payment/Surrender/Survival Benefit payments in respect of Life insurance policies*

Upto Rs. 100/- per Policy. (only in cases where customers are unwilling to collect the proceeds on their own).

For deep geography (remote)locations a fee Upto 1% on the maturity amount collected ,subject to a minimum of Rs.10000 and maximum of Rs. 25000(only in cases where customers are unwilling to collect the proceeds on their own)

NSC / KVP Maturity collection charges*
Upto Rs. 100/- per certificate. (only in cases where customers are unwilling to collect the proceeds on their own).
In case the securities have to be encashed due to default, charges will be Upto Rs. 25/- per certificate.
For deep geography(remote) locations a fee Upto 1% on the maturity amount collected ,subject to a minimum of Rs.10000 and maximum of Rs. 25000 (only in cases where customers are unwilling to collect the proceeds on their own)

Sale of security in the event of default*
All brokerages, transaction charges and other levies as per actuals

Legal & incidental charges
As per actuals.

Demat Charges
As applicable to the Demat account from time to time.

* Service Tax, Education cess as applicable. For your convenience, these taxes will appear as separate debits in your statements. The above fees/charges are standard rates applicable to the specified Loan Against Securities Products. Above fees/charges are subject to change from time to time as per Bank's policy and are non refundable.

Term Loan Facility Additional charges for Term Loan as under:

Description of Charges
Quantum of Charges

Processing Fee/Loan Processing Charge*
Upto 1% of the Loan/Sanctioned credit limit.Minimum Rs. 2000/- (Non refundable)

Cheque Bounce /SI Bounce/ECS failure charges*
Rs.550/-

Late payment charges
Upto 2% per month on unpaid EMI/Loan outstanding

Loan Cancellation Fee
Nil
However,interest for the interim period (Date of disbursement to Date of Cancellation) will be charged and processing fee will not be refunded

Stamp duty & other statutory charges
As per the rates applicable at the place of execution of Loan Agreement

Cheque Swap Charges/SI change charges
Nil

Prepayment Charges*
On Principal outstanding

  • For loan tenor of 6 months
    • No prepayment allowed
    • Penalty of Upto 2% if pre-closed before end of tenor
  • For loan tenor of >6 months
    • No prepayment allowed upto 8 months
    • Penalty of Upto 2% if pre-closed before 12 months
    • Penalty of Upto 1% if pre-closed before the end of actual tenor

Loan statement/repayment schedule charges(per statement)
Not Applicable

Legal & incidental charges
As per actuals.

No Due Certificate / No Objection Certificate (NOC)
Nil

Duplicate no due certificate / NOC
Nil

Solvency Certificate
Not Applicable

Charges for changing from fixed to floating rate of interest
Not Applicable

Charges for changing from floating to fixed rate of interest
Not Applicable

Sale of security in the event of default*
All brokerages, transaction charges and other levies as per actuals

* Service Tax, Education cess as applicable. For your convenience, these taxes will appear as separate debits in your statements. The above fees/charges are standard rates applicable to the specified Loan Against Securities Products. Above fees/charges are subject to change from time to time as per Bank's policy and are non refundable.

Effective 1st March 2015, NEFT transactions through NETBANKING and HDFC Bank Branches will be charged as below:

Value Band
Maximum Charges per txn (exclusive of taxes)

Amounts up to Rs.10,000/-
Rs. 2.50/-

Amounts from Rs.10,001/- to Rs.1 lakh
Rs. 5/-

Amounts above Rs.1 lakh up to Rs.2 lakh
Rs. 15/-

Amounts above Rs.2 lakh
Rs. 25/-

Effective 1st March 2015, RTGS transactions through NETBANKING and HDFC Bank Branches will be charged as below:

Value Band
Maximum Charges per txn (exclusive of taxes)

Amounts from Rs. 2 lakh to Rs.5 lakh
Rs. 25/-

Amounts above Rs.5 lakh
Rs. 50/-

Rates offered to customer during the period of Jan'15 to Mar'15

PRODUCT
Min IRR
Max IRR
Avg IRR

LOAN AGAINST SECURITIES - EQUITY
10.55%
13.5%
11.93%

LOAN AGAINST SECURITIES - DEBT
10.05%
13%
11.39%

Annual Percentage Rate offered to customer during the period of Jan'15 to Mar'15

PRODUCT
Min APR
Max APR

LOAN AGAINST SECURITIES - EQUITY
10.55%
13.51%

LOAN AGAINST SECURITIES - DEBT
10.05%
13.01%

 

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.
For the schedule of charges related to transactions of the overdraft account.

About

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI’s liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

 

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