Loan Against Shares


With Loan Against Securities (LAS) from NJ Capital you can unlock the potential of your investments without liquidating them and having to book profits or losses in an unplanned manner. All you have to do is pledge your mutual funds, equity shares, bonds or securities and get access to instant liquidity.

Unplanned redemptions / sales of investments not only get impacted by unfavourable market prices (since the timing of exit is not planned) but also generally result in upfront tax liabilities, all of which end up causing financial losses to investors and impacting the Goal based investments that the investor may be looking forward to make. The LAS - Term Loan product introduced by NJ Capital provides a very quick, convenient way of availing finance against securities held in your NJ E-wealth account, while still retaining ownership and riding the upside of being invested in the stock market.

The EMI based repayment structure also ensures that payments are made in an orderly, planned and affordable manner over the specified period and the liability is continuously brought down.

The main features of the Loan Product are given below -

Sr. No. Details Particulars
1 Product Loan Against Securities - Term Loan
2 Minimum Loan Amount INR. 25,000/- (Rupees Twenty Five Thousand only)
3 Maximum Loan Amount INR. 25,00,000/- (Rupees Twenty Five Lakhs only)
4 Securities acceptable as collateral Approved
  • Equity MF Schemes
  • Debt MF Schemes
  • Hybrid MF Schemes
  • Fund of Funds
  • Balanced Funds
  • Listed Equity shares
5 Loan Purpose Loans can be availed for any of the following purposes -
  • Business
  • Property Acquisition and/or Improvement
  • Education
  • Medical Expenses
  • Holidays/Weddings/Family Occasions
  • Personal Effects (Vehicle/Jewellery, etc.)
  • Retiring Existing Debt

In case the Borrower intends to invest the loan amount in capital markets, then only Group I shares (as specified in SMD/Policy/Cir-9/2003 dated March 11,2003 as amended from time to time, issued by SEBI) shall be accepted as collateral.

6 Loan Tenure (Months) Term Loans can be taken for a period varying from six (6) months to thirty six (36) months depending on the requirements of the Borrower.
7 Interest Rate The interest rates shall vary from 12% p.a to 13.50% p.a per annum depending on the tenure of the borrowing. The rates charged are as follows -
Loan Tenure (No. of Months) 6 12 18 24 36
Rate of Interest(%) P.A. 13.50% 13.00% 12.50% 12.00% 12.00%
8 EMI Due Date In case of loan disbursals during 1st – 15th (both dates included) of any month, the EMI due date will be the 25th of the same month.

In case of loan disbursals during 16th – last date of the month (both dates included), the EMI due date will be the 10th of the following month.
9 Margin (%) Required** (through the tenure of loan) The Borrower shall be required to maintain the specified margin at all times and the aggregate Security Value –i.e total value of all the Securities offered by the Borrower shall be netted off for such Margin and the balance will considered for the purpose of actual disbursal. This margin shall be maintainable every single day and any shortfall shall be made good immediately either by way of pledging additional securities or reduction of the loan (by way of repayment).

The indicative margins required to be maintained are given herein below -
  • Approved Equity MF's - 55% of the NAV
  • Approved Debt MF's - 10-20% of the NAV
  • Approved Hybrid Funds - 55% of the NAV
  • Approved Fund of Funds - 55% of the NAV
  • Approved Balanced Funds - 55% of the NAV
  • Approved listed Equity shares - Between 55% to 60% of the Last traded price.

Please refer to the specific scrip / mutual funds and the applicable margins. The above margin rates have been mentioned to provide a general idea of the margin requirements.
Such margins can change from time to time depending on the market conditions / internal policy of the company.

10 Notice Period to fulfil Margin Calls (i.e. where Actual Margin available falls below the Required Margin)

Three (3) Business Days. The margin can be restored either by repaying part of the loan or by offering more securities as collateral.
In case margin shortfall is made good by repaying some part of the loan, no prepayment charges would be applied on such amount prepaid.

11 Date of Disposal of Securities (in case of non-receipt of EMIs)

In case if the EMI Due Date falls on the 10th of a month and the due amount remains unpaid, the date of disposal of securities will be the 25th of the same month. In case if the 25th is not a Business Day, then securities will be disposed on the immediately following Business day.
In case if the EMI Due Date falls on the 25th of a month and the due amount remains unpaid till then the date of disposal of securities will be the 10th of the following month. In case if the 10th is not a Business Day, then securities will be disposed on the immediately following Business Day.

12 Disposal of Securities (in case of an occurrence of Event of Default / Potential Event of Default as defined in the Agreement other than non-receipt of Instalment)

Within a period of Seven (7) Business Days from the date of service of notice of occurrence of such Event of Default / Potential Event of Default by NJ Capital Private Limited or withinr such additional time period which may be extended at the sole discretion of the Lender.

13 Processing Fees (%)

0.5% of the loan amount subject to a maximum of Rs. 10,000/- (exclusive of all applicable taxes). The same shall be deducted from the disbursed loan amount.

14 Documentation Charges

First Time – Rs.500/- ( Rupees Five hundred only)
Subsequent Loans – Rs.200/- (Rupees Two hundred only)
(Exclusive of applicable taxes)
The same shall be deducted from the disbursed loan amount.

15 Prepayment Charges

2% (exclusive of all applicable taxes), on the principal amount prepaid.

16 Additional Interest - on Delayed Payment

1.5% per month or part thereof, on the EMI delayed, for the entire period of delay upto the date of realisation. (exclusive of all applicable taxes)

17 Dishonour Charges

INR 500/- (exclusive of all applicable taxes), for every instance of dishonour.

**Margin (%) Required -

If, as a result of price changes or due to any other reason whatsoever, the Actual Margin falls below the Required Margin, then the Borrower will be liable to restore/top-up the margin to Required Margin levels, either by pledging Additional Securities acceptable to the Lender and/or by repaying a portion of the Outstandings to the extent of the shortfall.

Margin (%) as applicable on the Pledged Securities, as on date hereof, are annexed herewith. However, the Borrower must note that the Margin requirements may change from time to time during the tenor of the loan - in the event of change in any applicable laws, change in market conditions and / or change in internal company policy. Such changes will be implemented prospectively.

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