Loan against securities enables you to take advantage of your investments by pledging financial assets such as fixed deposits, mutual funds, insurance, shares, etc. as collateral to the lending institution to get a line of credit. You can borrow funds between 5 lacs to 5 crores against mutual funds and shares at floating rates of interest ranging between 10 to 18 per cent. NRIs, Indian residents in addition to owners of Sole Proprietorship, Private Trusts, Public or Private Limited Companies are eligible to apply for a Loan Against Shares, Mutual Funds and more...
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.
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
The categories of securities that can be used as a collateral to obtain a loan against securities like shares and mutual funds include:
You can apply for a loan against securities and shares online in a hassle free manner by following these easy steps:
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.
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.
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.
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.
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.
There are 4 category of securities against which the facility can be availed currently:
Only Shares, ETFs and Bonds are required to be in Demat form. Mutual fund units can be accepted either in Demat or Physical form.
FICCL's current list of approved securities include:
Approved list of securities is subject to change from time to time in line with any regulatory or FICCL prescribed changes.
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.
No. You can use your existing bank account for receiving and transferring funds and existing demat account for pledging your securities.
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.
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.
Interest would be electronically debited on the due date to your bank account registered with us for NACH.
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.
You can make part / full payments at any point of time during the tenor of the loan via RTGS /NEFT/ IMPS / Cheque.
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
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.
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.
You can share service request / queries / grievances by using any of the below options:
You can apply for a LAS facility by using any of the below options:
* 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.