Loan against shares facility of SBI; check details
Those eligible can get up to Rs 20 lakh loan against equity shares
The need for emergency funds has gone up manifold during the pandemic. While loans against pledging gold jewellery is on the rise, State Bank of India also gives loans against shares.
Demat account holders can get overdraft facility or demand loan up to Rs 20 lakh.
Eligibility
Only the persons who have a Demat account with SBI Cap Securities are eligible for this loan.
According to the bank’s website, this facility can only be available in a single name. Until now, NRIs are not eligible for this type of loan.
Loan amount
According to existing norms, an eligible SBI customer can get a minimum loan of Rs 50,000 loan equity shares.
The maximum loan amount limit is capped at Rs 20 lakh. But it will not exceed Rs 10 lakh in case the loan is for subscribing IPOs.
Repayments
Demand loan can be liquidated in a maximum period of 30 months.
Demand loan is a type of loan which does not have any fixed repayment time. The borrower can have the liberty to repay the amount anytime without facing any pre-payment charges.
Demand loan is a form of short-term finance with no fixed tenure.
Interest rate
Interest rates on loan against share stood at 9.75% per annum.
Processing fee
For every loan against equity shares, SBI will charge a minimum Rs 1,000 processing fee (excluding GST), there is also a review charge of Rs 1,000 for overdraft accounts.