Loan Against Securities By State Bank of India
LOANS AGAINST SHARES
Leverage your investments in shares for loans to meet unforeseen expenses!!
Avail of loans up to Rs.20.00 lacs against your shares to enable you to meet contingencies, personal needs or even for subscribing to rights or new issue of shares.
This facility is available to our existing individual customers enjoying a past satisfactory relationship with SBI and maintaining their DEMAT Account with SBICap Securities Litmited. It is offered as an Overdraft or Demand Loan. Loan can only be availed in single name.
For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares against the security of existing shares. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies.
You can avail of loans up to Rs 20.00 lacs against your shares. Loans against shares not to exceed Rs 10 lacs if the purpose is for subscribing to IPOs
To be liquidated in maximum period of 30 months through a suitable reducing DP programme.
Nature of Loan
Overdraft / Demand Loan with the Repayment programme maximum 30 months
You will need to provide a margin amount of 50% of the prevailing market prices of the shares being offered as security.
Pledge of the demat shares against which loan is sanctioned.
Processing Fees : Nil
State Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The Government of India is the single largest shareholder of this Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of Top 1000 Banks in the world by "The Banker" in July 2012.
The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the Reserve Bank of India acquired the controlling interests of the Imperial Bank of India and SBI was created by an act of Parliament to succeed the Imperial Bank of India.
The SBI group consists of SBI and five associate banks. The group has an extensive network, with over 20000 plus branches in India and another 173 offices in 34 countries across the world. As of 31st March 2012, the group had assets worth USD 359 billion, deposits of USD 278 billion and capital & reserves in excess of USD 20.88 billion. The group commands over 22% share of the domestic Indian banking market.
SBI's non- banking subsidiaries/joint ventures are market leaders in their respective areas and provide wide ranging services, which include life insurance, merchant banking, mutual funds, credit cards, factoring services, security trading and primary dealership, making the SBI Group a truly large financial supermarket and India's financial icon. SBI has arrangements with over 1500 various international / local banks to exchange financial messages through SWIFT in all business centres of the world to facilitate trade related banking business, reinforced by dedicated and highly skilled teams of professionals.