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- Loan Against Securities
Loan Against Securities
A common purpose of making any investment is to generate additional income and build wealth to meet financial/personal goals over a period of time.
Whilst these investments are being nurtured with knowledge, discipline and patience, what if:
- There are contingencies but no liquidity to fall back on or
- There is a short term investment opportunity but your current access to funds may not be enough
- There are intermittent requirement of funds for personal or business purposes
In such scenarios, you face a dilemma to either sell your securities or let go of the opportunity.
We at Fullerton India are here to offer you Loan against Securities facility which allows you to instantly monetise your investments without selling them and grab that opportunity
Fullerton India helps you unlock the value of your financial investments like shares, mutual funds, bonds etc. by providing liquidity against your investments.
A dedicated Relationship Manager will be assigned to cater to your existing loan & ongoing service requirements
Salient Features
- Overdraft (OD) / Line of Credit (LOC) Facility*
- Loan amount from INR 5 lacs to INR 5 crores
- Wide range of approved securities including listed Shares, Mutual Funds, Bonds and Exchange Traded Funds (ETFs)
- Competitive interest rates
- No prepayment charges*
- Seamless processing resulting into faster Turn-Around-Time (TAT)
- Flexible Options with multiple drawdown and repayments during the tenor of the loan
- Pay interest only on the amount utilized
FAQs
What is Loan against Securities (LAS)?
Loan against Securities (LAS) is a facility offered against pledge / lien of marketable securities. Approved list of such securities and the respective Loan to Value % (LTV %) may vary from lender to lender.
What could be the various purposes for which LAS facility can be availed?
Funds drawn using a LAS facility can be used to meet effectively all legitimate needs. For example - personal or business requirements, investments, meeting contingencies etc. It could be one of the best ways to generate liquidity without selling the securities.
What are the advantages or benefits of availing LAS facility from FICCL?
- Wide range of approved securities
- Minimal Documentation
- Quick processing
- Ease of drawing funds
- No prepayment charges
- Dedicated Relationship Manager (RM)
- Competitive interest rates
What is the type of LAS facility offered by FICCL currently?
FICCL offers LAS facility as an Overdraft (OD) / Line of credit (LOC) currently. It provides flexibility of drawing funds and making repayments as per the requirement of the customer.
What is the tenor of the LAS facility offered?
Initially, the LAS facility is offered for a period of 12 months. This facility can be subsequently renewed subject to fulfilment of renewal requirements as prescribed by FICCL.
What are the charges related to LAS facility?
You will be charged a nominal processing fee. The interest will be charged only on the amount you draw and for the period that you draw it. Also, the interest will be charged on a daily basis, but will be debited to your account only once a month. Visit our Loan Against Securities Interest Rates page to know more.
What are the various types of Securities currently acceptable to FICCL?
There are 4 category of securities against which the facility can be availed currently:
- Shares
- Mutual Funds
- Bonds
- ETFs
Are securities only in demat form accepted by FICCL?
Only Shares, ETFs and Bonds are required to be in Demat form. Mutual fund units can be accepted either in Demat or Physical form.
How large is the approved list of Shares & Mutual Funds of FICCL?
FICCL's current list of approved securities include:
- Listed Shares – 500+
- Mutual Fund Schemes – 1500+
Approved list of securities is subject to change from time to time in line with any regulatory or FICCL prescribed changes.
What is Loan to Value (LTV) offered by FICCL against the approved securities?
FICCL offers LTV of 50% against approved list of shares. LTV for approved MF schemes and Bonds would range from 50% to 85%. Current LTV % is subject to change from time to time in line with any regulatory or FICCL prescribed changes.
Whether a new bank account and demat account required to be opened to avail LAS facility with FICCL?
No. You can use your existing bank account for receiving and transferring funds and existing demat account for pledging your securities.
Is there a change in ownership of securities in case of pledge / lien marking?
No. The ownership of the securities is retained with the existing owner of the securities in case of pledge / lien marking of securities. There is no physical transfer of securities in case of pledge / lien marking. This means, you would continue to enjoy all the corporate benefits which a shareholder / unit holder is entitled to.
How can a disbursal request initiated?
You can make a request for a disbursal through your assigned RM or by making a call at our toll free no. 1800 419 8900 or by emailing at [email protected]. Disbursal of funds is subject to releasable amount in line with risk policy of FICCL.
How would interest be recovered?
Interest would be electronically debited on the due date to your bank account registered with us for NACH.
Are part payments towards the outstanding balance allowed?
Current facility offered as OD / LOC allows the customer to make part payments during the tenor of the loan facility. There are no prepayment charges.
How can part / full payments be done towards the LAS facility?
You can make part / full payments at any point of time during the tenor of the loan via RTGS /NEFT/ IMPS / Cheque.
Is foreclosure of the LAS facility allowed?
Yes. You can choose to foreclose the LAS facility anytime during the tenor of the loan after payment of the outstanding balance including overdue amount (if any). There are no foreclosure charges in case of Line of Credit/Over draft facility
How can a release of pledged / lien marked securities be done?
You can make a request for a release of pledge / lien marking of required securities through your assigned RM or by making a call at our toll free no. 1800 419 8900 or by emailing at [email protected]. Release of pledge / lien marking of securities is subject to releasable securities in line with risk policy of FICCL.
What happens in case of fall in the value of securities?
In case, fall in the value of securities has led to a shortfall of margin requirements prescribed by FICCL, then you need to provide pledge / lien marking of additional securities acceptable to FICCL or make a part payment to regularise the margin shortfall. Fulfilment of margin obligations needs to be done within the time period prescribed by FICCL.
How can a service request / queries / grievances related to the LAS facility shared?
You can share service request / queries / grievances by using any of the below options:
- Access Customer Service Portal
- Contact your RM
- Call Toll Free no. 1800 419 8900
- Email at [email protected]
- Visit our branch
How do I apply for a LAS facility with FICCL?
You can apply for a LAS facility by using any of the below options:
- Register on our website under LAS section
- Visit our branch
What are the documents required to avail LAS facility with FICCL?
- Proof of Identity and Address
- Proof of Bank and Demat Account
- Latest Demat / Mutual Fund Holding Statement
- Latest Form 16 / Salary Certificate / ITR / Audited P&L and Balance Sheet*
* Loans are at the sole discretion of Fullerton India and are subject to guidelines of the Reserve Bank of India. Fullerton India may engage the services of marketing agents for the purpose of sourcing loan assets in certain locations.
