State Bank of India customers can avail minimum of Rs 50,000 under loan against shares.State Bank of India (SBI), the country's largest lender, offers loan against shares to its existing customers.
Individuals holding DEMAT accounts with SBI Cap Securities - part of the SBI group - can avail a loan of up to Rs 20 lakh underSBI loan against shares scheme to meet contingencies, personal needs or even for subscribing to rights or new issue of shares.
The loan will not be sanctioned for speculative purposes, inter-corporate investments or acquiring controlling interest in a company, according to State Bank of India (SBI)'s internet banking website - onlinesbi.com.
( Your SBI savings account balance may fetch lesser interest now)Eligibility for SBI's loan against sharesLoan against shares is given to existing individual customers enjoying a past satisfactory relationship with SBI and maintaining their DEMAT Account with SBI Cap Securities, SBI said on its website.
The loans are offered as an overdraft or demand loan.
Loan can only be availed in single name and NRIs are currently not eligible for availing this loan, SBI said.(SBI Instant Money Transfer service: How to send money to anyone through SBI debt card)Minimum and maximum amount given under SBI's loan against sharesState Bank of India customers can avail minimum of Rs 50,000 and maximum of Rs 20 lakh under loan against shares.
Meanwhile, loan amount cannot exceed above Rs 10 lakh if a customer wants the loan for subscribing to shares under the Initial Public Offering (IPO).(Looking for a home loan Find out SBI interest rates and processing fees here)Repayment schedule for SBI's loan against sharesDemand loans under SBI's loan against shares have to be liquidated in maximum period of 30 months while overdraft loans are auto renewed every year, according to SBI.(How SBI's Flexi Deposit Scheme works: Rate of return, withdrawal and other key details)Interest rates and processing fee for SBI's loan against sharesState Bank of India charges processing fee of 0.75 per cent of the loan amount or minimum of Rs 1,000 plus GST.Interest Rate On Loanagainst Shares / Debentures / BondsSource:www.sbi.co.inMargin for SBI's loan against sharesAn individual availing loan against shares needs to provide a margin amount of 50 per cent of the prevailing market prices of the shares being offered as security.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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