Loan Against Securities Eligibility Criteria

Eligibility for a Loan Against Securities includes being an Indian citizen or a Non-Resident Indian. Owners of Sole Proprietorships, Partnership Firms, Private Trusts, Private Limited Companies, or Public Limited Companies are also eligible. However, minor applicants are ineligible for the loan.

Eligibility for a Loan Against Securities includes Indian citizens, non-resident Indians, and owners of Sole Proprietorships, Partnership Firms, Private Trusts, Private Limited Companies, or Public Limited Companies, while minors are ineligible. For Digital Loan Against Mutual Funds (LAMF), you need HDFC Bank Savings Account with single-mode operation, a NetBanking user ID and password, and Mutual Fund holdings managed by CAMS in a single name. For Digital Loan Against Shares, HDFC Bank customers must hold Current, Savings, and Demat Accounts with Demat holdings in a single name and approved shares valued at ₹2 lakh and above.

The RBI guidelines for Loans Against Shares ensure stability in the securities market and regulate risks to prevent defaults and market upheavals.

• Purpose: Loans can be provided for emergency expenses, personal needs, subscribing to new issues, or secondary market purchases.
• Collateral: Only Group I stocks, traded frequently with low-cost impact, are acceptable for loans above ₹5 lakh.
• Loan Amount: The maximum loan for physical securities is ₹10 lakh and ₹20 lakh for dematerialised securities.
• Loan-to-Value Ratio: The maximum LTV ratio for loans by NBFCs is 50%, meaning the loan cannot exceed 50% of the collateral's value.
• Lending Policy: NBFCs must ensure borrowers do not pledge the same security for multiple loans and diversify collateral.
• Reporting Transparency: Institutions must report to the stock exchange if collateral exceeds ₹100 crore to prevent overborrowing and market instability.

To apply under the Loan Against Securities, you must hold an HDFC Bank Savings Account operated in a single name. You also need a valid NetBanking User ID and password to proceed with digital applications for products like Digital Loan Against Mutual Funds or Shares.

To avail a Digital Loan Against Mutual Funds, your mutual fund holdings must be registered with CAMS as the transfer agent and held in single ownership. You also need to be an Indian resident and maintain a single-operated HDFC Bank Savings Account with NetBanking access.

You can avail a Digital Loan Against Shares if you are an HDFC Bank customer holding a Savings, Current, and Demat Account. Your Demat holding must be in a single name, and the total value of approved shares should be ₹2 lakh or more.

Under the Loan Against Securities, you can get a loan of up to 50% of the current market value of approved equity shares held in your name. This option is available if your holdings meet HDFC Bank’s eligibility criteria for digital loan products.

If you hold equity mutual funds, you can receive a loan of up to 50% of the Net Asset Value (NAV) under the Digital Loan Against Mutual Funds scheme. Your mutual funds must be with CAMS and held in a single name for eligibility.

You can avail a loan of up to 80% of the Net Asset Value (NAV) of debt mutual funds or fixed maturity plans (FMPs) under the Digital Loan Against Mutual Funds scheme, provided your holdings are with CAMS and you meet the specified account criteria.

You can avail a loan of up to 80% of the surrender value of your life insurance policies under this initiative.

Under the Loan Against Securities, you can get a loan of up to 70% of the current value of your National Savings Certificates (NSC).

You can avail a loan with a loan-to-value ratio ranging from 60% to 75% on selected PSU Navratna bonds with tenures of 10, 15, or 20 years.

If you are a minor, you are not eligible to apply under the Loan Against Securities. Eligibility is limited to Indian residents, NRIs, and entities such as Sole Proprietorships, Partnerships, Private Trusts, and Companies that fulfil the specified documentation and account ownership conditions.