This loan product is a scheme which will provide finance funding to subscribe to IPOs of PSUs and Public Limited Company.
Loan amount can be used for funding and helping an individual to subscribe to IPOs of PSUs and Public Limited Company. The loan amount can be used to purchase share and debentures of PSUs and Public Limited Company.
Eligibility criteria for State Bank of India (SBI) loan for subscription to IPOs:
Any customers having enough sources of income/cash flows to repay the loan within with the time period suggested by the bank.
The applicant should provide IT returns of the last 2 years
Proof of identity.
Existing customers who previously applied for loans like home, car, education loans etc, wherein the existing loan doesn’t have any arrears at the time of application at the time of the IPO loan.
This will be a demand loan
The loan amount will be at a minimum of Rs. 1, 00, 000 and maximum of Rs. 10, 00, 000 to the extent of Reserve Bank of India instructions.
The base rate 9.3%,
The scheme details
For employees who qualify for xpress credit
15.80% per annum (BR = 9.3% + 6.50%)
16.30% per annum (BR = 9.3% + 7.00%)
Documents required by the bank will be:
Completed loan application
3 Passport size photographs
Proof of identify
Proof of residence
Original Salary Certificate from employer - in case of salaried individuals
TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Dep’t - - in case of salaried individuals.
The loan should be repayable within a 30 day period from allotment
There will be a 50% margin of the issue price of the share applied for as per the RBI.
The processing fees is 0.51% of the loan amount. The minimum of Rs. 511 for the 1st application and subsequent 3 loans will be Nil.
You can apply for this loan against State Bank of India Loan for subscription to IPOs from the nearest State Bank of India branch or apply via their website. All you need to do is login with your details and then fill in the online application form
Yes, you can apply for this loan via the State Bank of India website.
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