Documents Required for Loan against Securities – IIFL
Loan Against Securities FAQs
You can repay the loan at any point of time during the loan tenure by repaying the due interest and principal loan amount through RTGS/ NEFT/ cheque.
Yes. You can pledge shares held with any depository participant in NSDL or CDSL
Yes, a customer can avail a loan by pledging third party shares post fulfillment of the relevant documentation requirement.
Yes. A customer can release the same after repaying the loan amount to the effect that the margin is maintained as per the requirement.
Yes, all the shares must be in the demat form only. Mutual fund units can be in demat or in physical form.
An overdraft account will be set up with IIFL Finance Ltd. This account will have a certain drawing limit, which you can utilize as and when required. Drawing limit depends upon the quality and quantity of the security units pledged by you.
The portfolio will be revalued daily. However, in case of a sharp fall in market prices, an interim revaluation may happen any time.
The actual time taken to sanction and process the loan depends on the time taken to establish the creditworthiness of the borrower.
No, the ownership of the shares is retained by the customer.
This is the list of shares/ securities approved by IIFL Finance Ltd against which a loan can be availed, subject to predefined hair cut or margin.
As per RBI norms, a minimum 50% margin must be maintained on equity shares and mutual funds, For other types of collateral, margins range from 10% to 35%.
If the market value drops to a level where the minimum margin is less than stipulated, the borrower must recoup the margin by pledge of additional shares or by cash margin/ part-repayment.