Thursday, April 23, 2015

SBI Loan against Shares – On Tap, Online


          The Indian stock market is on a roll and the investors through ‘Loans against Shares’, facility can invest more in the share markets.

          To reduce the processing time in availing the Loans against Shares and to increase the asset base, State Bank of India is offering the ‘Loans against Shares’, through its Online Portal.

          The process is simple and the navigation screens are easy to navigate.

          The highlights of this scheme is as under:

Maximum Loan : INR 20 lacs
Loan Purpose: a) meet contingencies, b) personal needs c)  subscribing to rights d)  new issue of shares.
Remember Loan will not be sanctioned for (i) speculative purposes {ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies

Eligibility: This facility is available to existing individual customers enjoying a past satisfactory relationship with SBI 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.
Repayment Schedule: To be liquidated in maximum period of 30 months through a suitable reducing DP programme.
Margin: - Margin amount of 50% of the prevailing market prices of the shares being offered as security.
Security: Pledge of the demat shares against which overdraft is granted.
Fees: Processing Fees - Nil
Interest Rates:- 650 bps above Base Rate i.e., 16.50% p.a. currently

Simple guidelines to fill on the Application form::

01)  Ensure that  you should have SB/CA Account with SBI which is  atleast six months old.

02) Ensure that your account is  KYC compliant.

03) Please note that standard charges for Non-Home Transactions will be applicable as per Bank's extant instructions.

04) Please note to key in the same address as updated in your Bank Account. In case the there is a change in the address, kindly update the same at your Branch before proceeding with the form.

05) Give only an active mail id.

06) One the application form is filled, download it, sign, scan along with Pledge Request Form (PRF) and mail to sbi.18225@sbi.co.in

07) The hard copy of the signed Application Form, Pledge Request Form along with Income Proof as mentioned in Application Form to be couriered to the below mentioned address-- State Bank of India,Shivsagar Estate Branch,Devchand Building,Dr. Annie Besant Road,Worli,Mumbai 400018.Branch Code 18225.      
   
08) Please ensure to put in the date on the Pledge Request Form before submitting the same.

09) The customer to ensure that the quantity of shares mentioned in the PRF is available in his / her Demat Account. If there is any discrepancy the application will be rejected.

10)  Stamp Duty at the rate of 0.2% of the Loan Amount + Rs 100 will be recovered from the customer at the time of Loan Disbursement.

So go ahead now, and enjoy the Power of Digital Banking