Eligibility

Adult Individuals

Purpose

The loan is given for any of the purposes broadly categorized as under:

Personal Purposes:
For meeting personal expenses like for marriage, housing, education, medical etc.

Business Purposes:
For meeting financial requirements for your professional or business purposes other than operations on stock markets

Conditions

Loan Amount
Minimum Rs. 1 lac, Maximum Rs.20 lacs

Security
Equity Shares of the Companies on the approved list of the Bank held in demat form.

Margin
40% of the value of shares for approved Stocks only

Value of Shares
Current Market Price

Period of Loan
For 12 months. May be renewed on request, at Bank's discretion:

Conditions:
Current Account to be opened with the Bank for availing the OD facility
Depository Account to be opened with the Bank for holding the Demat shares.
Only Demat shares from the Banks' approved list will be accepted as security. However shares held with other Depository Participants may also be accepted as security.
If the value of shares pledged falls and after deduction of margin amount the residual value is not adequate to cover the outstanding in the loan account, the amount of shortfall should be paid or additional shares of adequate value should be pledged within 24 hours.

Interest & Documentation

Penal Interest   
2% over the applicable rate in case of irregularity or overdue in the account.

Default
If the shortfall in the account is not rectified either by payment of funds or by pledging additional shares the Bank may at its discretion sell the shares for recovery of its dues wholly or partly, without any notice.

Documentation
Simple Documentation.