• IDBI Loan against Securities

    Mostly, investments in shares and mutual funds are useful keeping a long-term goal in mind and instant liquidity options are few and far between. IDBI Bank provides a specialised loan that aims to change that norm. This loan from IDBI Bank allows individuals and non-individuals to utilise the financial support of their investments without having to cancel out the investments or liquidating them. These loans can help out in business or personal financial needs.

    Where can an IDBI Bank Loan against Securities be used?

    This loan is provided to individuals or non-individuals for any purpose that is not explicitly speculative. Banking on the power of the investments made by the applicant, this loan is a powerful aid in financial terms.

    Who can apply for IDBI Bank Loan against Securities?

    An unsecured business loan as this has a few eligibility criteria to be met in order for the financial institution to be able to sanction the loan. The eligibility requirements can be mentioned as follows –

    1. Applicants can be individuals, professionals, sole proprietorships, partnership firms and private limited companies (including closely-held public limited companies)
    2. Applicants should be at least 18 years of age when the loan is sanctioned and at most 65 years of age at the time of loan maturity. In case of non-individuals, the business existence should be for at least 2 years
    3. The acceptable securities that can be pledged are dematerialised equity shares (loan to 50% of market value), mutual funds (loan up to 50% of net asset value), RBI Bonds, life insurance policies, national savings certificate and Kisan Vikas Patra

    What are the types of financing under IDBI Bank Loan against Securities?

    Loan against Securities from IDBI Bank is a specific term loan with optional overdraft facility.

    What are the loan limits under IDBI Bank Loan against Securities?

    Based on the credit-worthiness of the applicant, validity of documents and the market value or NAV of the pledged securities, IDBI Bank can provide loans based on its discretion.

    What are the interest rates for IDBI Bank Loan against Securities?

    Interest rates for a Loan against Securities could depend on the base lending rate and is based on the discretion of IDBI Bank. Further changes to the rates could be done by IDBI Bank as and when required.

    What documentation is required during applying for IDBI Loan against Securities?

    The standard list of required documents for applying for this loan are mentioned as follows –

    1. Photographs of each individual applicant and co-applicant, directors and promoters, in case of a company & Trusts, partners in case of a partnership firm or authorized person as applicable in case of societies
    2. IT Returns, Audited Profit and Loss Account statement and Balance Sheet for the last 2 years, six months bank statement of the primary current account, business proof, latest year provisional, sundry creditors and debtors list
    3. Certified true copies of bank account statements for the last 6 months.
    4. Know Your Customer (KYC) documents for the co-applicant.
    5. Partnership deed, Memorandum of Association (MOA) and Articles of Association (AOA) or License issued under the Shops and Establishments Act of the respective states for business proof.

    The above set of documents comprise the minimum required list. To aid in credit approval, IDBI Bank might ask for extra documents if necessary.

    What are the features of IDBI Bank Loan against Securities?

    The Loan against Securities from IDBI Bank is a good financing option for urgent financial needs on business or personal grounds.

    Some key features of this specialised loan are as follows –

    1. Loan tenure or repayment period is annual and renewable per year
    2. Minimal documentation and faster approval
    3. No security or collateral required (pledged shares act as security)
    4. Loan amounts are variable and no upper limit specified

    How to apply for IDBI Bank Loan against Securities?

    The loan can be applied for through IDBI Bank’s website, as well as forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail IDBI Bank requesting an executive assistance for application process.

    One can also apply for IDBI Bank Loan against Securities through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.

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