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Loan Against Securities

Unlock The Power Of Your Investments.

Life's twists and turns are hardly predictable. And, often they make us sacrifice our future goals to meet the needs of our present. However, with IndiaNivesh, you can prevent this. Our Loan Against Securities (LAS) offers you a wonderful opportunity to take care of your financial needs without liquidating your investments. It gives you the freedom to enjoy the double benefit of getting quick liquidity on your securities, while you continue to earn returns on them. 
All you need to do is to pledge your Shares, Mutual funds or Securities as collateral and you can get a loan against securities ranging from Rs.5 lacs to Rs.10 crores (7.5 crores against Shares/Mutual Funds and 10 crores against Bonds/Debt Instruments). With the added advantage of quick processing and attractive interest rates, you can be sure that your today and tomorrow are secure.

The IndiaNivesh Advantage

  • Loan Amount:
    Loan Against Securities is offered on approved Scripts and Mutual Funds to the extent of up to 50% of the market value and Mutual Funds to the extent of up to 70% of the Net Asset Value (NAV).
  • Low Interest:
    The interest in loan against securities is charged only on the amount utilized and not the entire loan
  • Repayment:
    Only the interest needs to be repaid monthly via ECS or PDCs. The principal needs to be repaid at the end of the term.
  • Overdraft:
    Loan against security amount is also available as an overdraft facility.
  • Additional Finance:
    You have the option to avail additional finance on your loan against securities by pledging more shares, mutual fund units or securities.
  • Security Swap:
    You have the flexibility to swap securities as per your outlook on the stock market while enjoying the benefits of dividends, bonus and rights issues.

Margin Trade Funding (MTF)

Margin Trade Funding offers customers the opportunity to invest/leverage/trade in equity shares at a pre-defined margin. Margin Trade Funding essentially enables the customer to take a larger share of the equity market to a level that goes above his resources at hand. Thus, it is a mechanism that allows trading with borrowed funds or securities. It permits the customer to pay just a part of the total scrip purchase price, while IndiaNivesh will provide a loan to account for the balance amount. However, the loan amount and scrip purchase is subject to the quality of the securities owned by the customer.

If you are looking for increased exposure in the capital market, it is advisable to consider Margin Trading in India to leverage your existing shareholdings. Do note that you can pay the margin in cash or in the form of approved shares (as listed by IndiaNivesh). Margin financing is a far more practical option as opposed to futures trading, if you require long term funding. It is also advised for investing in stocks not included on the futures list. In India, margin trading is allowed for Group I securities and those included in IPOs that satisfy the conditions of derivatives segment in the stock market.

With a margin loan, you gain the flexibility of earning money over smaller price movements against the large numbers of stocks you can purchase with the loan amount. You also have the option to margin-buy for stocks anticipated to rise in value, and margin-sell for stocks anticipated to fall.

Features Of Margin Trade Funding

  • Collateral : Securities as per list of approved shares
  • Tenure : Up to 1 year
  • Minimum loan amount : Rs 25 Lakhs
  • Loan Margin : 50% and above

*Please contact us for the list of approved shares at the time of making the loan application.