Axis bank is one of the most respected and leading names in the banking sector of India. It has wide network of branches across India and significant international presence in Hong Kong, China, UK, UAE, Sri Lanka and Singapore. Axis Bank is part of a bigger Umbrella group- Axis group, which includes other entities such as Axis Bank foundation, mutual fund, Axis finance, Axis direct, Axis trustee and Axis capital. Retail banking happens to be area of specialisation and continuous focus for Axis Bank. Past year, Axis bank’s deposits crossed INR 1 Lac Crores and have shown continuous Compounded annual growth of 21% over past 5 years. In its retail loans, Axis Bank’s focus has been on secured loan that account for 86% of the total loans extended. This makes Axis bank a very stable bank financially. In the wide retail loan portfolio, Axis Bank has loan against shares. Let us now go through the procedure, eligibility and documentation required for Axis bank loan against Shares.
Features of loan against Shares
Following are the salient features of the secured Loan against share from Axis Bank,
► Maximum loan amount that can be extended under this scheme is Rs. 20 lacs and minimum is Rs. 1 lac.
►Margin is 50% for multiple scrip and 60% on single scrip. Anytime during the loan tenure, investment in single scrip should not exceed 65% in the total portfolio pledged with the bank
►Special rate of interest starting from 11.50% and up to 12.50%.
►There is option of reviewing and renewing the loan after 12 months.
►An upper ceiling for withdrawing loan is sanctioned but the interest is charged on the actual utilisation. For the account, borrower also gets ATM and cheque book facility.
►Axis bank gives flexibility of pledging demat shares from any depository participant in India
►Processing fee charged is 0.15% of the total amount sought for loan.
►There is NIL penalty on pre or foreclosure.
►The loan granted under this scheme cannot be used for investment in capital market.
►If there is a fall in the value of scrips owing to market volatility then the borrower will pay up the shortfall in margin within 4 days. If he/she fails to do so, then pledged shares can be disposed of at volition of the bank.
Following persons are eligible for this type of loan:
1. The facility can be availed by an individual who is citizen of India and also by a Non-resident Indian.
2. The minimum age of the applicant should not be less than 18 years as on the date of making application for loan.
Documentation required for Loan
Now that we have discussed features and eligibility of the loan, let us move on to documentation required for securing this loan.
►Identity proof which includes Voter’s id Card, PAN Card, Driving licence, Employee ID Card, Government department ID Card;
►Residence Proof such as Bank Account statement bearing residential address, latest electricity or telephone bill, LIC insurance policy or insurance premium receipt or active house lease agreement.
►Latest statement of holding
►Duly filled form pledging the shares and scrips
►Guarantor form which is mandatory where Demat account is jointly held.
One can apply for the loan against shares online and a representative from the bank would contact you to process the loan. You can also locate the nearest branch by using their tool online and visit it personally and meet the officials face to face. Apart from loan against share, Axis bank also offers a wide variety of other loans that are enumerated as below:
►Loan against property
►Loan against securities
►Loan against fixed deposits
►Commercial vehicle and construction equipment loan
Axis bank is your one stop bank and boasts of well rounded banking services that include below mentioned services:
►Accounts including savings, fixed deposit, salary account, NPS, Pension disbursement account, recurring deposit, 24 flexi deposit etc
►Debit cards, prepaid cards, credit cards, commercial credit and debit cards
►Forex services including fund transfers, foreign exchange, foreign currency demand drafts and travellers’ cheques
Axis bank has special service vertical for servicing NRI’s and Agri and rural customers as well. We at letzbank bring you Axis Banks’ valuable loans at the most competitive rates and favourable terms. Our comparative display helps you in comparing and evaluating from the various options available from numerous well known and reputed lenders under different categories of loans. So logon today and choose what works best for you only on letzbank.