Multiple banks. Different interest rates. Call it a "conflict of interest".
  • loading

    State Bank of India (SBI) Loan against Shares

    We found 1 State Bank of India (SBI) Loan against Shares

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    12.90% - 14.90% Fixed
    1% One time fee
    24K - 15L
    5 Years
    Response Time Within 30 minutes
    Think about
    Eligibility Criteria

    State Bank of India (SBI) Loan against Shares is Rated as "Excellent!" by 335 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service



    State Bank of India Loan against Shares

    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. State Bank of India provides a specialised loan that aims to change that norm. This loan from State Bank of India allows individuals and non-individuals to utilise the power of their investments without having to lock out of or liquidate them. These loans can help out in business or personal financial needs.

    Usage of SBI Loan against Shares

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

    Eligibility Criteria for State Bank of India Loan against Shares

    An unsecured loan as this has a few eligibility criteria to be met in order for the bank 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) and must be Indian residents and existing customers of State Bank of India with DEMAT accounts with SBICap Securities Limited
    2. Applicants should be at least 18 years of age when the loan is sanctioned. Shares in the name of minors, trusts, partly paid up shares or shares in the name of individuals who are directors or promoters of the same holding company are not allowed
    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)

    Types of Financing under State Bank of India (SBI) Loan against Shares

    Loan against Shares from State Bank of India (SBI) is a specific demand loan with optional overdraft facility.

    Loan limits under State Bank of India Loan against Shares

    Based on the credit-worthiness of the applicant, validity of documents and the market value or NAV of the pledged securities, State Bank of India can provide loans based on its discretion. The minimum amount of loan that can be sanctioned is INR 50000 and the maximum limit is INR 20 lakhs. In case loans are being availed for subscribing to IPOs, the maximum amount of loan will be INR 10 lakhs. The portfolio of securities is assessed regularly and based on the performance, loan limits might be revised.

    Interest rates for State Bank of India (SBI) Loan against Shares

    Interest rates for a Loan against Shares could depend on the base lending rate and is based on the discretion of State Bank of India. As of November 2015, the applicable rate of interest is Base Rate + 3% per annum, i.e. 12.30% per annum. Further changes to the rates could be done by State Bank of India as and when required. Interest is charged only on the amount that is actually utilised as a loan in case of overdraft facility, irrespective of the overdraft limit that is allowed. Overdrafts are annually renewable, while demand loans are to be repaid within 30 months.

    Documentation required during applying for SBI Loan against Shares

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

    1. Photographs of individual applicant and/or 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 and business proof
    3. Know Your Customer (KYC) documents
    4. 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 in case of non-individuals
    The above set of documents comprise the minimum required list. To aid in credit approval, State Bank of India might ask for extra documents if necessary.

    Features of State Bank of India Loan against Shares

    The Loan against Shares from State Bank of India 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 as per the performance of the shares

    Applying for State Bank of India Loan against Shares

    The loan can be applied for through State Bank of India’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 State Bank of India requesting an executive assistance for application process. One can also apply for State Bank of India (SBI) Loan against Shares through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.


    Compare Personal Loan Offers from Top Banks. Apply Online and Get e-Approved Instantly.

    State Bank of India (SBI) Loan against Shares Reviews

    Common Loader Icon
    This Page is BLOCKED as it is using Iframes.