Loans against securities

For those looking to leverage their investments without liquidating them, HDFC Bank’s Loan Against Securities serves as a viable option. You can withdraw funds as needed from your loan and only pay interest on the amount you use and for the duration it is utilised.

Key Benefits & Features of Loan Against Securities

Loan Benefits

Adjustable Overdraft Value:

  • Increase the overdraft limit by pledging more shares or reduce it by withdrawing shares

  • Get loans against a wide range of securities, including equity shares and Mutual Fund units

Convenient Banking:

  • Access through PhoneBanking, NetBanking, BillPay and ATMs

  • Enjoy a free international Debit Card with the Overdraft Account

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Loan Details

Market-Dependent Loan Value:

  • The overdraft amount depends on the market value of the pledged shares

  • Increase or decrease your overdraft value by adjusting the pledged securities

Wide Range of Collaterals:

  • Eligible securities include equity shares and Mutual Fund units

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Competitive Rates:

Benefit from highly competitive interest rates and low processing charges

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Most Important Terms & Conditions

*The Most Important Terms and Conditions for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose.

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More About NRI Loans Against Securities

The primary advantage of NRIs borrowing against securities is the ability to leverage investments for liquidity without having to liquidate them. It also offers flexibility in repayment and the potential for tax benefits under Indian Income Tax laws.

NRIs can initiate the NRI Securities Loan application process online through the bank’s official website or through their NetBanking portal, provided they have a Demat account with the bank. The process involves submitting an application form along with the necessary documents for verification.

Frequently Asked Questions

Non-Resident Indians (NRIs) are eligible to secure loans against their investments in securities like shares, Mutual Funds, and bonds in India. This is facilitated through an overdraft against their Demat accounts, subject to certain terms and conditions set by the Reserve Bank of India (RBI) and the lending institution.

The ceiling for Loans Against Securities for NRIs is determined by the lender based on the type and value of securities pledged and their market value. You can increase your overdraft value by pledging more shares or decrease it by withdrawing shares.

Interest rates on these loans are influenced by market conditions and the RBI’s policies. They are usually pegged to the bank’s Marginal Cost of funds-based Lending Rate (MCLR) plus an additional spread, which can vary from bank to bank.