Corp Demat Scheme
For liquidity against shares in electronic form
1. Eligibility
| v | Individuals who have been properly introduced to the Bank (in the case of shares held jointly, the loan account should be in joint names) |
| v | Close relatives having regular & independent income may join as co applicant/s. |
| v | In addition to spouse, maximum of one close relative permitted to join as co applicant. |
2. Purpose
| v | To provide liquidity to investors against shares |
| v | To meet contingencies and personal needs or for subscribing to the Rights / New Issues of shares/Debentures/Bonds or for purchases in the secondary market |
3. Loan Amount
Minimum Rs. 50,000/- ; Maximum Rs. 20.00 lakh.
(As per RBI guidelines, the maximum amount of loan which can be granted to an individual against Demat shares is Rs. 20 lakh. A declaration by the applicant indicating aggregate of loans against shares availed by him/her from our Bank / Financial Institutions does not exceed Rs. 20 lakh is to be submitted).
4. Margin
Minimum 50% of the market value of shares pledged
5. Rate of Interest
Floating rate of interest 14.50 % p.a. (w.e.f:02.08.2010)
(Fixed interest rate option not available)
6. Security
Pledge of fully paid up Equity Shares of approved companies, which are mandated for compulsory trading in Demat form loan.
7. Guarantee
Third party guarantee required.
8. Collaterals
Collateral security is obtained only where considered necessary, at the discretion of the sanctioning authority
9. Repayment
| v | Repayable in maximum of 24 months, subject to annual review. |
| v | EMI/Notional interest as a percentage to net income is applicable as per guidelines. |
10. Service Charges
0.50% of the limit sanctioned, subject to a minimum of Rs. 500/- and maximum of Rs. 5,000/-(inclusive of service tax
11. Pre payment penalty: NIL
12. Other Conditions :
| v | Normally Fixed loans sanctioned under the scheme. |
| v | Loan against shares in physical forms is strictly not permitted. |
| v | The Scheme is available at select Branches |
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