Loan Against Securities By Kotak Mahindra Bank

Features & Benefits of Kotak Mahindra Bank

  1. Kotak Mahindra Bank offers the most competitive interest rates for the Stock Ace accounts
  2. Instant Liquidity - Avail overdraft facility against your investments in equity shares, mutual funds & other investments
  3. Interest for Overdraft facility is charged only on utilized funds
  4. Complete online access to funds for banking and investment ease
  5. Varying tenure from 1-36 months and renewable yearly
  6. Overdraft is offered against equity shares, mutual fund units and any other investment which are part of ourapproved list of securities. Lending is done only against Dematerialized securities.
  7. Multi-city banking and 24/7 free Phone Banking
  8. Debit Card Access to the entire ATM network
  9. SMS Alerts Service and more

Disclaimers:

Please Note:

  1. No lending will be done against:
    • Partly paid up shares
    • Physical shares
    • Lock in shares
    • Scrips in name of minor.
    • Shares of Kotak Mahindra Bank
  2. Stocks / Shares need to be part of our approved list of securities.
  3. Not required if Primary Bank Account is Kotak Mahindra Bank.
  4. For loans: *Conditions apply: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

 

Documents Required for Kotak Mahindra Bank

  • Stock Ace Account Opening Documents & KYC Documents
  • Copy of the last 2 years Income Tax Returns
  • 3 months Bank Statement (Primary Bank Account)*
  • Latest Demat Account Statement
  • Client Master List for the Demat account

Fees & Charges

 

General Schedule of Fees and Charges for Stock Ace

Particulars
Type of Account

Product Name
Stock Ace Currenet Account (in Rs.)

Average Quarterly Balance (AQB) in Rs.
25000

REMITTANCES / PAYMENTS

Demand Draft / Banker's Cheque
Payable at Branch Locations
Free 25 DD/ BC p.m.;
thereafter 1/1000
(Min 40 Max 5000)

Payable at Non - branch Locations
2/1000 (Min 40 Max 5000)

RTGS
Through Branch
Rs. 15/ txn

Through Net Banking
Free

NEFT
Through Branch
Free

Through Net Banking
Free

Fund Transfer
Branch & Net Banking
Free

Cheque Book
Default Cheque Book is Payable At-par Only
1 Chq Book (50 Leaves) Free p.m.; 2 / leaf

RECEIPTS / COLLECTIONS

Local Cheque
 
Free

Clearing Out-station Cheque
Drawn at Branch Locations
Free

Drawn at Non - Branch Locations
< 10K: 50 / Chq;
10K - 1L: 25/Chq; >1L: Free
(Plus Other Bank Chrgs)

RTGS
Inward
Free

NEFT
Inward
Free

Fund Transfer
Inward
Free

HOME BANKING

 
Cheque Pick-up or DD Delivery
40 / Request

On Call Requests
Cash Pick-up or Delivery
< 2L: 200 / Request;
2 - 5L: 300 / Request

Beat Service
Cheque Pick-up
500 p.m.

CASH DEPOSIT & WITHDRAWAL

Cash Deposits
At Home Branch Location
Free upto 2L p.m.;
thereafter 2.5 / 1000

At Non-home Branch Location
4.5 / 1000 ; Min 50 per Txn
(Max 1L / Day w/o approval)

Cash Withdrawal
From Home Branch Location
Free

From Non-home Branch Location
2 / 1000 ; Min 50 per Txn
(Max 3L/Day w/o approval)

AUTOMATED TELLER MACHINE (ATM)

Kotak ATMs
Balance Enquiry
Free

Cash Withdrawal
Free

Other Bank's VISA ATMs - Domestic
Balance Enquiry
Free

Cash Withdrawal
Free 5 transactions per month, thereafter 110 per Txn

Other Bank's VISA ATMs - International
Balance Enquiry
15 per Txn

Cash Withdrawal
110 per Txn

ATM Txns Declined
Insufficient Funds
25 per Txn

DEBIT CARD

Primary Card
Issuance Fee
Free

Annual Fee
Free for 1st year, therafter 250 p.a.

Supplementary Card
Issuance Fee
250

Annual Fee
250 p.a.

Add-on Card
Issuance Fee
250

Annual Fee
250 p.a.

Replacement of Debit Card
Lost Card
200

Damaged Card
Free

VISA Global Assist
 
USD 5

VISA Global Assist
Lost Card
USD 35

POS Txns Declined
Insufficient Funds
25 per Txn

OTHER CHARGES

Account Related
 
 

AQB Non - maintenance
NMC
Nil till Stock Ace limit is availed, thereafter 900 per quarter

Account Closure Charges
 
Nil

Cheque Returns
 
 

Cheques Deposited & Returned / (Outward)
Local
300 per Chq

Out-station
300 per Chq + Corr Bank Chrgs

Cheques Issued& Returned (Inward)
Financial Reasons
300 per Chq

Technical Reasons
Free

SMS Alerts & Updates
 
 

Alerts
Large Debit / Credit
50 per Quarter

Updates
Daily Balance
25 per Quarter

Weekly Balance
Free

Phone Banking
IVR Assisted
Free

Agent Assisted
Free

CHARGES COMMON FOR ALL PRODUCTS

Account Statements
 
 

Monthly
Physical / Email
Free

Weekly
Physical
300 per Quarter

By Email
Free

Daily
By Email Only
Free

Ad- hoc Statements Request
At Branch / Phone Banking
<90 Days: 100
91-365 Days: 200
>365 Days: 1000

On Net Banking, ATM
50

On Mobile Banking
Free (by Email Only)

Standing Instruction

Set-up
 
50

Execution
 
Free

Amendment
 
25

Failure
 
25

STATEMENT / CERTIFICATE / REPORT ISSUANCE

Balance Statement
Other than 31st March
100

Interest Statement
Duplicate Only
100

TDS Certificate
Duplicate Only
200

Confidential Report
 
500

Paid Cheque Report
 
Free

Signature Verification
 
100

Photo Attestation
 
300

Solvency Certificate
 
10,000

Credit Confirmation
 
500

Foreign Currency Payments & Collections
 
 

DD Issuance
 
500 + FCY Conversion Chrg

DD Cancellation
 
500 + FCY Conversion Chrg

DD Revalidation
 
500

TT Transfer
Corr Bank Chrgs Borne by Beneficiary
250 + FCY Conversion Chrg

Corr Bank Chrgs Borne by Beneficiary
1000 + FCY Conversion Chrg

Cheque Collection
 
500

Cheque Deposited and Returned
 
1,000

Cheque Issued and Returned
Financial Reasons
1,000

Cheque Issued and Returned
Technical Reasons
Free

MISCELLANEOUS CHARGES

PIN Regeneration
ATM/ Phone/Net Banking
(if sent through courier)
50

DD/BC Cancellation /
 
100

Fund Transfer Return
Financial Reasons
300

 
Technical Reasons
Free

ECS Return
 
300

Online Tax Payment
Through Net Banking
N.A

 
Through Branch
N.A

Cheque Purchase Charges
 
0.5 / 1000 per Day

Travelers Cheque Encashment
 
1% of TC Amount + FCY Conversion Chrg

Foreign Currency Conversion Charge
 
100

LOAN OVERDRAFT CHARGES

Rate of Interest
 
12% to 15%

Overline Interest
 
18%

Processing Fee
 
Upto 2% of loan amount subject to minimum of 2500

Renewal Fee
 
2,500

Security Invocation Charges
 
0.3% of the sell-off value subject to a maxium of 5,000

Please Note:

  • Average Quarterly Balance is the average balance to be maintained in your account in a quarter. It is not the lowest/minimum balance in your account on any given day
  • Kotak Mahindra Bank levies Non-Maintenance Charge (NMC) in case Average Qty balance in the account is not maintained. NMC is NIL till the time the Stock Ace limits are availed in the current account.
  • The above current charges; subject to change by Kotak Mahindra Bank are applicable until the Stock Ace limits are available in the account. Thereafter, all charges applicable to Edge Current account shall be applicable on this account. For details of all applicable charges, please refer the General Schedule of Features & Charges available at our branch or website www.kotak.com

 

FAQs for Kotak Mahindra Bank

 

I have a single scrip in my portfolio; can I get limits against only one scrip?

Yes. You can avail of limits by pledging the single scrip, if it is part of our approved list of scrips.

Is my overdraft limit fixed?

Your portfolio is valued periodically, and your overdraft limit varies, depending on the market rate of the shares you have pledged. You may at any time choose to increase your overdraft limit by pledging more shares, or decrease it by withdrawing them (within the permissible limits).

How frequently do you revalue my portfolio?

We revalue your portfolio on a weekly basis. Additionally, in the event of a sharp fall in the market prices, we conduct an interim revaluation.

Can the bank inform me about my latest limit by e-mail / SMS alerts?

The Bank has an e-mail alert and SMS alert facility whereby we intimate the latest limit as and when it changes due to revaluation of prices or lodgment / withdrawal of shares.

I do not have a Demat Account with Kotak Bank. Can I still avail of your facility?

Yes. You can pledge shares held with any Depository Participant in NSDL or CDSL, with your respective Depository Participants.

Whose shares can I pledge?

You can pledge your own shares, or those of your blood relatives (parents, spouse, children, and blood siblings only) above 18 years of age.

In whose name would the shares be held?

Your shares remain in your own name while you reap the benefits of your portfolio. This means, you can continue to enjoy all your shareholder benefits such as rights, dividends and bonuses, while enjoying the additional liquidity.

 

How do I receive the overdraft amount?

We require you to open a Current Account in your name into which we will create an overdraft limit. Your overdraft limit will depend on the quantity and value of the securities you have pledged with us.

What are the other benefits that I can get from my Overdraft Account?

Your Stock Ace Account comes equipped with all the benefits associated with Kotak Mahindra Bank's current account such as Phone Banking, Net Banking, Bill Pay, Debit Card, ATM facilities, etc.

How much do I pay?

Interest rates at Kotak Bank are the most competitive. You only pay interest on the amount of the overdraft that you use, and for the time you use it. Interest is debited to your account at the end of each month.

How do I pay the interest accumulating in my account every month?

With reference to RBI guidelines vide BOD.NO.BP.BC.10/21.04.048/2004, please note that interest debited in your overdraft account has to be serviced at monthly intervals or at such intervals as may be applicable from time to time, by way of credits into your overdraft account.

Who can apply for the Stock Ace facility?

Only Resident Individuals can apply for the Stock Ace facility. Other entities are specifically not eligible to apply

What are the minimum and maximum loan amounts?

You are given a drawing power up to 50% of the value of the shares. Minimum loan amount is Rs. 5 lakhs. Maximum loan amount is Rs. 20 lakhs. The loan is applicable for a year and renewable at the end of each year.

What are the loan tenure options?

The initial tenure is for a year. At the end of the year, the client is required to renew the facility with simple documentation.

What are the charges on my Stock Ace Account, apart from the Interest on the overdraft?

There is a nominal processing fee which is charged at the rate of 0.5% of your loan amount.

What are the documents that I need to submit?

  • Complete KYC documentation, along with completed Account Opening Form
  • Completed Agreement and Loan Facility documentation
  • Please refer to your nearest branch for the complete list of documentation
  • How do I apply for the Kotak Stock Ace Account?
  • You can approach us in any of the following ways:
  • Call us at our Customer Contact Centre at 1800 11 6022 – North India & 1800 22 6022 – Rest of India
  • Write to us at stockace@kotak.com
  • You can just walk into your nearest branch and ask about the facility.

What security/ collateral do I have to provide?

No additional security/ collateral need to be provided, apart from the securities against which the loan is granted.

How do I get to know my Credit Limits?

You can call our Customer Contact Centre to know the status of your account, details of the securities pledged, amount obtained against different securities, details of shortfall (if any), etc.

Kotak Mahindra is one of India's leading banking and financial services group, offering a wide range of financial services that encompass every sphere of life.

Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides working capital loans. Kotak has one of the largest and most respected Wealth Management teams in India, providing the widest range of solutions to high net worth individuals, entrepreneurs, business families and employed professionals.

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