Apply for Loan Against Securities HDFC Bank

Loan Against Securities  Updated date : December 6, 2017 13

Enjoy quick and hassle-free processing when you apply for loan against securities online, and receive the services of a dedicated loan against securities help desk. In addition, our loans against securities come without any prepayment and foreclosure charges, and an auto renewal facility.

Apply for loan against securities for amounts of Rs 2 lakhs or more.

✔ Loan Against Securities Anytime, Anywhere Access
✔ Anytime, Anywhere Access
✔ Loan Against Securities Auto Renewal Facility
✔ Auto Renewal Facility
✔ Loan Against Securities No Prepayment Penalty
✔ No Prepayment Penalty

Loan Against Securities Features

There are several benefits of loans against securities by HDFC Bank. You pay interest only on actual amount used thanks to the overdraft facility, and get the benefit of a current account.

The key feature of our loan against securities is the option to pledge a wide variety of securities, from mutual funds to life insurance policies. In addition, enjoy special benefits on your loan against security, such as doorstep service and easy repayment.

  • High Loan to Value
    Get a loan worth up to 80% of the value of the securities pledged, with the minimum loan amount of Rs. 2 lakhs.
  • Loan End Use
    The HDFC Bank Loan Against Securities is provided 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.
  • Easy Repayment
    Service your interest payments by way ofcredits in your account every month. The interest is calculated only on the amount of the loan actually used by you.
  • Transparent Processing
    All our charges are communicated up front, at the time of the processing of the loan. HDFC Bank Loan Against Securities comes without any prepayment and foreclosure charges, and relieves you from the stress of dealing with post dated cheques.
  • Quick and Efficient Servicing
    With our doorstep service and efficient servicing processes, your loan will be processed quickly. Our Loan Against Securities has a dedicated help desk, to help you with the entire process.
  • Interest Only on Actual Amount Used
    When you opt to take a Loan Against Securities, you don't need to worry about paying interest on the entire loan amount. You will be charged interest only on the actual loan amount you use. Interest will be calculated on the daily outstanding balance, and debited to your account at the end of every month.
  • Single Scrip Lending Service
    Get up to 50% of the value with any Depository Participant. Click here for more details.
  • Quick Application through NetBanking

    Individual customers who have an existing Demat Account with HDFC Bank can easily apply for a Loan Against Securities through NetBanking. To avail of the loan, simply log in to NetBanking using your Customer ID and IPIN. Click on the Demat Tab, and then click on the Request option on the left hand side of the screen. Finally, click on Loan Against Securities, and select the shares that you'd like to offer as collateral from your Demat Account

    View a demo of the process here.

    Login to NetBanking and apply now.

    Terms & Conditions:

    • Available quantity refers to the free scrips available for pledging.
    • Please note that the Demat holdings shown in your account are as of previous working day. The final loan limit will be based on the value and quantity available at the time of pledging of securities.
    • Minimum loan amount for eligibility is Rs.1,00,000 and the maximum is Rs. 20,00,000. Please adjust the quantity of scrips for pledging in case your limit is not in the range.
    • Please select only Equity shares for pledging.
    • Shares of minimum 2 different companies (different ISIN) need to be pledged. (Single scrip lending also available, kindly refer to our approved list for details)
    • The contribution of any single scrip should not exceed 65% of the total portfolio value at any point of time.
    • In case the Demat account is jointly held, the authorization of the joint Demat account holders would be required. Bank representative will visit you for the sign off.
    • Terms and conditions apply, limit setting subject to documentation being completed and signed off.
    • Credit is at the sole discretion of HDFC Bank Ltd.
  • Pledging Options
    You are free to pledge shares from any Depository (NSDL or CDSL) and any Depository Participant across the country.
  • Options for NRI Applicants
    NRIs can choose from options of shares, mutual funds (equity, debt of FMPs), insurance policies, NSC or KVP.
  • Current Account Benefits
    When you opt for an HDFC Bank Loan Against Securities, we will create a current account with an overdraft limit for you. This will allow you to enjoy all the facilities and benefits that come with a current account. You will also have access to features such as Phone Banking, NetBanking
  • Wide Variety of Approved Securities
    You are free to pledge any of the following securities:
    • Equity SharesNote: 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) up to 50% of NAV (Net Asset Value)
    • Mutual Funds (Debt) upto 80% of NAV
    • Life Insurance Policies issues by LIC and select Private Insurance Companies (find the list of approved policies here)
    • National Savings Certificates (NSC)
    • Kisan Vikas Patra (KVP)
    • NABARD's Bhavishya Nirman Bonds
    • Non-Convertible Debentures
  • Approved Equity Shares
  • Approved Mutual Fund schemes
  • Approved scrips under single scrip lending facility

Loan Against Securities Eligibility Criteria

The eligibility criteria for loan against securities are applicable for Indian residents, and, in select cases, NRI, owner of different types of firms and companies. Read below to know more about the eligibility criteria for loans against securities at HDFC Bank.

The following individuals are eligible to apply for a Loan Against Securities:

  • Indian Residents
  • For select securities, you are eligible for the loan if you are a member of a Hindu Undivided Family (HUF), and NRI, owner of a sole proprietorship, partnership firm, or private limited company

Trusts and minors are not eligible for a Loan Against Securities.

Loan Against Securities Documentation

HDFC Bank has requires simple documents for loans against securities, to enable speedy processing and quick disbursal of funds for your loan against securities. Read below to know more about the document required for loans against securities.

The following documents are required along with your Loan Against Securities application:

  • Identity proof
  • Address proof
  • Signature Proof
  • If you represent Companies/Proprietorships/Partnership firms you will need to submit your IT returns, an audited Balance Sheet and Profit & Loss Account for the previous two years.

Loan Against Securities Rates & Fees

HDFC Bank offers attractive interests rates on loans against securities. Refer below to know more about loan against securities interest rates and loan against securities fees and charges.

The HDFC Bank Loan Against Securities Rates & Fees are as follows:

FeeAmount to be Paid
Annual Maintenance Charge (AMC)*For Equity, Debt - MF/FMP, NCD, Bonds - Upto 0.50% of the sanctioned credit limit. Minimum Rs.1000 and maximum upto Rs.5000.
For other physical securities cases (NSC / KVP / GDC / LIC / pvt Insurance policies) - Upto 0.50% of the sanctioned credit limit. Minimum Rs.2500 and maximum upto Rs.5000.
Processing fee/Loan processing charge*For Digital cases - Rs. 500/-
For Equity (non digital), Debt - MF/FMP, NCD, Bonds - Upto 1% of the Loan/Sanctioned credit limit. Minimum Rs. 3500/- )(Non refundable)
For other physical securities cases (NSC / KVP / GDC / LIC / pvt Insurance policies) - Upto 1% of the Loan/Sanctioned credit limit. Minimum Rs. 5000/- (Non refundable)
Processing Fee on enhancement casesWhere agreement value is enhanced through digital mode - Nil
Where agreement value is enhanced through physical mode - Upto 0.50 % of the Loan / Sanctioned credit limit. Minimum Rs. 500/-
Stamp duty and other statutory chargesAs per applicable laws of the state
Charges on drawings in excess of limits (due to application of interest or revaluation of portfolio under pledge)Penal interest up to 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*Up to Rs. 1,000 per month where limits are nil in the month
Credit Information Companies (CICs) chargesUp to Rs. 50/- per instance
Charges for changing from fixed to floating rate of interestNot Applicable
Charges for changing from floating to fixed rate of interestNot Applicable
No Due Certificate/No Objection Certificate (NOC)Nil
Duplicate no due certificate/NOCNil
Solvency CertificateNot Applicable
Prepayment charges*Up to Rs. 1,000/- 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 ChargesUp to 100 Cheque leaves issuance FREE per month
TRF (Transaction Request Form) Processing Charges*For Digital cases - Rs. 50/- per Transaction
For Non Digital cases (all securities) - Rs. 100/- per TRF
Pledge creation fees*Up to Rs.5/- per NSC/KVP/Bond/Insurance Policy/MF Unit Certificate
De-pledge fees*Up to Rs.5/- per NSC/KVP/Bond/Insurance Policy/MF Unit Certificate on release of charge (de-pledge, lien removal etc).
Charges for realisation of proceeds on maturity/redemption in respect of Fixed Maturity Plans (FMPs)*Up to Rs. 1,000/- per instruction
Charges for realisation of proceeds on maturity in respect of RBI Bonds*Up to 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*Up to 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 up to 1% on the maturity amount is collected, subject to a minimum of Rs. 10,000 and a maximum of Rs. 25,000(only in cases where customers are unwilling to collect the proceeds on their own)
NSC / KVP Maturity collection charges*Up to 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 up to Rs. 25/- per certificate.
For deep geography (remote) locations, a fee up to 1% on the maturity amount is collected, subject to a minimum of Rs. 10,000 and a maximum of Rs. 25,000 (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 chargesAs per actuals
Demat chargesAs applicable to the Demat account from time to time

*Service Tax & other Government Levies as applicable would be charged additionally 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:

From 1st January 2016, NEFT transactions through NetBanking will be FREE.

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

Value BandMaximum Charges per txn (exclusive of taxes)
Amounts up to Rs. 10,000/-Rs. 2.50/-
Amounts from Rs. 10,001/- up to Rs. 1 lakhRs. 5/-
Amounts above Rs. 1 lakh up to Rs. 2 lakhRs. 15/-
Amounts above Rs. 2 lakhRs. 25/-

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

Value BandMaximum Charges per txn (exclusive of taxes)
Amounts above Rs. 2 lakh up to Rs. 5 lakhRs. 25/-
Amounts above Rs. 5 lakhRs. 50/-

Rates offered to customer during the period of July'17 to September '17 

ProductMin IRRMax IRRAvg IRR
Equity8.60%12.00%10.28%
Debt8.00%11.00%8.88%

Annual Percentage Rate offered to customers during the period of July'17 to September '17

ProductMin APRMax APRAvg APR
Equity8.60%12.00%10.37%
Debt8.00%11.01%9.56%

*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

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