Share Loan

Eligibility

Individuals/ Firms and Companies are eligible forShare Loan

Purpose

Advances against primary security of physical shares or shares in dematerialized form approved by Head Office to be granted to Individuals /Firms/Companies to meet their requirements.

Nature of Facility

Demand Loan/Overdraft facility.

The borrower should be in a position to pay interest & margin incase of fluctuation in value of the shares at regular intervals.

 Margin

• Minimum margin of 50% is to be maintained, on the lowest market value of the share during the month prior to allowing the advance.
• Drawing power will be calculated at weekly intervals.

 Amount of Advance

• For Individual – Upto Rs 50.00 lacs
• For Firms/Companies – Upto Rs 200.00 lacs

 Rate of Interest

13%p.a. payable on quarterly basis, subject to change from time to time.

Transfer of Securities

Whenever the limit/advances granted to a borrower against shares are in physical form

• It should be ensured that the said securities are transferable in Bank’s name.
• It should be earmarked / Rokka with security Exchange Board in Bank’s name.
• Rokka/earmarked from the concerned companies