Axis bank loan against securities
Axis Bank provides Loan Against Securities, enabling individuals or entities to secure financing by leveraging the value of their securities. Eligible collateral includes shares, bonds, mutual funds, life insurance policies, and other financial assets.
Unlock the Power of Your Investments with Axis Bank's Loan Against Securities (LAS)
In today's fast-paced financial world, accessing liquidity without selling off your valuable investments can be a game-changer. Axis Bank's Loan Against Securities (LAS) provides the perfect solution, allowing you to borrow funds while keeping your securities intact. Whether you need urgent cash for personal or business needs, LAS lets you leverage your existing portfolio of shares, bonds, mutual funds, or insurance policies as collateral.
What is Loan Against Securities?
Axis Bank's LAS offers individuals and businesses a convenient way to raise funds by pledging their financial assets. Instead of liquidating your securities, which may interrupt long-term investment goals, LAS allows you to borrow money while retaining ownership and the potential for future gains on your investments.
Key Features of Axis Bank's LAS
Axis Bank offers a host of benefits to customers opting for their LAS product. Here are some standout features:
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Instant liquidity:Get instant funds in your OD A/C for your unforeseen expenses without selling your long-term investments.
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Enjoy exciting interest rate: Get loan against securities at a competitive rate of interest.
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Pay interest on amount utilised: Interest is charged only on the amount utilised.
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No pre-closure charges: Nil pre-payment charges on loan against securities.
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Quick Disbursal: Once the loan is approved, the funds are quickly disbursed, making LAS an efficient option when you require immediate access to cash.
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Corporate action benefits: Continue to reap dividend and other corporate action benefits against the pledged securities.
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Ownership: The Loan Against Securities facility is available to individuals, NRI, HUF, etc. Here is the eligibility requirement:
| Facility | Loan to Portfolio Value | Loan Amount | Eligible Clients |
|---|---|---|---|
| Loan against Shares & Mutual Funds | Up to 60% | Minimum: ₹25 Thousand Maximum: ₹20 lakh | Resident Indians NRIs |
| Loan against Debt Mutual Funds & FMPs | Up to 85% | Minimum: ₹1 lakh Maximum: ₹25 crore | Resident Indians NRIs, HUFs, Proprietorships, Partnerships, Pvt.Ltd. Trusts, LLPs & Unlisted Ltd.Companies* |
Benefits of Axis Bank's Loan Against Securities
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Maintain Your Investment Portfolio: With LAS, there's no need to sell your shares or bonds, ensuring you can still benefit from market appreciation and dividend income.
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Ease of Use: The process to apply for LAS is simple, and Axis Bank provides a hassle-free experience with minimal documentation.
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Competitive Interest Rates:Interest will be paid only on the amount utilised.
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Availability of large Loan Amount:Avail loan upto 20 Lakhs for Equity and 1 Cr for Debt from the comfort of your home.
What is the eligibility criteria for Axis loan against securities?
To be eligible for a Loan Against Securities from Axis Bank, the following criteria generally apply:
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Account Holder: You need to be an Axis Bank savings or current account holder.
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Securities: Eligible securities Equity and/ or equity Mutual funds in Demat form. Mode of Demat operation as single holder.
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Pledging Requirement: The pledged securities must be on Axis Bank's approved list. For example, shares can provide up to 50% of their value as collateral, while debt mutual funds may offer up to 85%.
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Ownership: You retain ownership of the securities during the loan period and continue to receive dividends or bonuses from them.
What is the rate of interest on Axis loan against securities?
| Sr. no | Product | Rate of Interest (p.a.) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 24x7 Loan Against Securities (Digital) |
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| Additional Notes: | ||||||||||
| - Repo Rate Reset frequency: 3 months or as decided by the Bank, whichever is earlier. | ||||||||||
| - The Bank may change the spread over the Repo Rate during the loan tenure. | ||||||||||
| - Customers who availed disbursement or sanction prior to October 1, 2019, will continue to operate on MCLR. Existing customers can contact the bank if they wish to switch to the Repo Rate. | ||||||||||
| 2 | 24x7 Loan Against Securities (Physical) |
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Renewal Charges Offered to Customers
| Sr.no | Product | Charges |
|---|---|---|
| 1 | Loan against equity mutual fund | Rs. 3000/- + GST |
| 2 | Loan against debt mutual fund | 0.1% of sanctioned loan amount or Rs. 5000/- which ever is lower + GST |
| 3 | Loan aaginst Listed bonds/Non Convertible Debentures | 0.1% of sanctioned loan amount or Rs. 5000/- which ever is lower + GST |
| 4 | Loan against Life insurance policies | Rs. 3000/- + GST |
| 5 | Loan against Equity Shares | Rs. 3000/- + GST |
Additional Charges
| Sr.no | Type | Charge |
|---|---|---|
| 1 | Processing Fee Charges | Upto 0.50% of sanctioned loan amount or Rs. 2000/- which ever is Higher + GST |
| 2 | Penal Charge | Financial Default: 8% p.a above applicable interest rate on the overdue amount (subject to the aggregate not exceeding Rs. 1,00,000/- per instance) |
| 3 | NEFT | As applicable at bank level |
| 4 | RTGS | As applicable at bank level |
| 5 | Pledge Charges | As applicable |
| 6 | Charges for changing from fixed to floating rate of interest | NA |
| 7 | Charges for changing from floating to fixed rate of interest | NA |
| 8 | Prepayment Charges | NA |
| 9 | No Due Certificate | NA |
| 10 | Solvency Certificate | NA |
Required Documents for HDFC Loan Against Securities
- KYC Documents
- Latest statement of holding of mutual funds
- Pledge form for the creation of pledge
- Optional Gaurentor Form (Mandatory in case of joint holding)
How to Apply for This Loan
You can apply for this loan via Net Banking or by visiting the nearest branch.
Via Net Banking:
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Log in to the Axis Bank website link or apply from 'Open' Mobile bankking App or internet banking by browsing to loans center -> 24x7 Loan Against Securities.
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Select securities and review the Drawing power, accounts to pay with.
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Accept Terms and Condition, pay Charges. OD(Overdraft Account) will be created now.
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Add Nominee
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Enter OTP to get the drawing power, so as to utilise your funds.
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