State Bank of India Loan for Subscription to IPOs
Several firm and brokerage firms offer a loan for an IPO subscription in India. State Bank of India (SBI) is one such bank that offers loan for IPO subscription and customers can borrow certain percentage of the IPO value.
What is SBI Loan for Subscription to IPOs?
SBI does not offer separate products as IPO loan; rather, the bank offers loans for “subscription to public issues". The repayment terms range from few days to few months, and other features are quite similar to the IPO financing products offered by other financial institutions.
What are the eligibility criteria?
- 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.
Details About SBI Loan for Subscription to IPO
The key details about loans for subscription to IPO offered by SBI are given in the table below:
Interest Rate | Contact the bank |
Loan Amount | Contact the bank |
Repayment Tenure | Contact the bank |
Margin | 50% |
Processing Fees | 1st Loan: Rs.5112nd and 3rd Loan: Rs.101After 3rd Loans: Nil |
What are the types of financing available?
This will be a demand loan
Documents Required
- 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.
How do I apply for this loan?
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.
FAQs on State Bank of India Loan for Subscription to IPOs
- What is an IPO?
An Initial Public Offering (IPO) is the process through which a privately owned company issues its shares to the public for the first time. It marks the transition from a private owned company to a publicly traded company on the stock market.
- Can I apply for State Bank of India Loan for subscription to IPOs online?
Yes, you can apply for this loan via the State Bank of India website.
- Is the performance of the SBI loan for subscription to IPO related to market trends?
Yes, market conditions influence the IPO performance and hence, it may impact your loan.
- How do I apply for this loan?
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.
- Can anyone get a loan for an IPO subscription?
Whether you get a loan for IPO subscription or not depends on your creditworthiness, lending policies of the financial institution, and other terms and conditions.
- What happens if shares are not allotted in the IPO?
The blocked or borrowed amount is released, and the loan is closed if no shares are allotted. The interest will be charged only for the number of days the loan was utilized and not for the full loan tenure.
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