SBI Loan: Want money to meet unforeseen expenses? Get it this way
SBI Loan: Are you in need of a loan due to an unforeseen situation and want to leverage your investments in equity shares to meet those unforeseen expenses! India's largest public sector bank - the State Bank of India (SBI) offers loans against shares. You can avail loans up to Rs 20 lakh 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 the existing SBI customers who enjoy a past satisfactory relationship with the bank and have their DEMAT Account with SBI Cap Securities. It is offered as an Overdraft or Demand Loan. Loan can only be availed in a single name. Non-resident Indians or NRIs are currently not eligible for this loan.
The bank has designed this loan for customers with 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, there is a small caveat. The bank website says that it will not sanction loans for speculative purposes, inter-corporate investments or acquiring controlling interest in company or companies.
The minimum loan amount is Rs 50000 while the upper limit is Rs 20 lakh. The bank says that loans against shares will not exceed Rs 10 lakh if it is for the purpose of subscribing to IPOs.
-- Demand Loan :To be liquidated in maximum period of 30 months.
-- Overdraft: Running Overdraft (Auto Renewal every year)
You will need to provide a margin amount of 50 per cent of the prevailing market prices of the shares being offered as security.
Pledge of the DEMAT shares against which loan is sanctioned.
0.75 per cent of the loan amount with minimum of Rs 1000 + GST.
Rs 1000 + Applicable GST (Applicable only for Overdraft A/C)
Refer to the interest rate page on its website for interest rates
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