SBI loan against shares: Check eligibility, minimum and maximum loan amount, processing fee and other details

The State bank of India (SBI) is offering  a loan against shares. The country's largest lender offers the loan to its existing individual customers who have Demat account with SBI Cap Securities. This loan is being provided to meet unforeseen expenses and other contingencies. Under this offer, SBI gives loan up to 20 lakh against shares of the customers. A SBI customer who has account with SBI Cap Securities can also avail loan for personal needs or even for subscribing to rights or new issue of shares against its holdings in stocks. It is an overdraft / demand Loan with the repayment programme maximum 30 months. SBI customers seeking this loan must provide a margin amount of 50% of the prevailing market prices of the shares being offered as security, which is pledge of the demat shares against which loan is sanctioned.

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SBI loan against shares purpose:  
This loan can be availed 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. However, loan will not be sanctioned for  
(i) speculative purposes  
{ii) inter-corporate investments or  
(iii) acquiring controlling interest in company / companies

SBI loan against shares eligibility
This facility is available to SBI existing individual customers enjoying a past satisfactory relationship with the bank and maintaining their DEMAT Account with SBI Cap Sec. It is offered as an Overdraft or Demand Loan. Loan can only be availed in single name.

SBI loan against shares maximum and minimum Amount
SBI existing customers can avail loans up to Rs 20 lakh against shares, however,  this Loan should not exceed Rs 10 lakh if the purpose is for subscribing to IPOs. Minimum Loan Amount: Rs 50,000. 

SBI loan against shares processing fees and interest rate.
There is no processing fee charged by the bank for this loan, while review charge of Rs 1000 + applicable GST per annum has to be paid to the bank.  SBI loan against shares be checked from the SBI official website sbi.co.in.