The State Bank of India (SBI) providing personal loans as SBI loan against shares scheme to eligible customers with affordable interest rates, and 30 months of overdraft/demand loan tenure.
In this personal loan, the bank uses your shares as security to the bank. On the basis of your pledge shares security the bank can provide you a loan amount of up to 20 lakhs Rs.
You can use this loan to fulfill your personal needs or unpredicted expenses. For example, expenses as against the security of existing shares, and subscribing to rights or new issue of shares, etc.
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Main Highlights of SBI Loan Against Shares
- Customers who maintaining Demat accounts with SBI capital securities.
- A maximum of 20 lakhs Rs. & minimum of 50,000 Rs. loan amount can be provided in this loan scheme.
- Loan tenure for both demand & overdraft loans facilities is up to 30 months (On applied terms & Conditions).
- The effective interest rate is 9.75% per annum with 1 year of 7.25% SBI MCLR.
- In the case of subscribing for an IPOs, the loan amount should be less than 10 lakhs Rs.
- This loan is not available for non-Indian Citizens.
- Processing fees (0.75% of the loan amount), and review charges with service tax are also applied on different applied conditions.
- You can apply online as well offline for this loan scheme.
What is SBI Loan Against Shares?
Simply it is a loan in which you must be pledged your Demat shares as security to the SBI bank to avail of the required loan amount. This loan is overdraft and demand in nature. Also, You will need to provide a margin amount of 50% of the prevailing market prices of the shares that you want to pledge to the bank as a security.
How much Amount of Loan is Provided in SBI Loan Against Shares Scheme?
A Minimum of – 50,000 Rs.
A Maximum of – 20 Lakhs Rs.
Who is eligible for the SBI Loan Against Shares?
- Must be a citizen of India having an account in SBI (Existing customers). Non-Indian Citizens are not allowed.
- The existing customers having a good relationship with the bank in terms of good profile & many other factors too.
- The applicant’s account should be at least 6 months old.
- The customers having a DEMAT account with SBI Capital securities.
- The number of shares that are mentioned in the Demat account should be correct.
- This loan is only sanctioned with a single person’s name.
- The SBI loan against shares can be offered either in an overdraft loan facility or a Demand loan facility.
- Some other loan rejection reasons are given below.
According to the State bank of India although this is a personal loan, but it will not be sanctioned to these types of purposes or aspects, such as
- For Speculative Purposes.
- In which high risks are involved.
- For investments makes by a company in another company (Inter-Corporate Investments).
- For getting a controlling interest in company or companies.
- If you want to take a loan against shares for the purpose to subscribe initial public offerings (IPOs) then, the loan amount should not exceed 10 lakhs Rs.
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SBI Loan Against Shares Document Requirements?
1. There are required a few documents if you want to apply online.
2. But if you want to apply offline then, you should carry all relevant documents regarding to avail this loan in the branch, such as common identity proofs, address verification documents, income proof, salary slips, ITR, etc.
Interest Rate for SBI Loan Against Shares?
The infective interest rate for SBI loans against shares is 9.75% (The interest rate may vary from applicant to applicant).
1-year SBI MCLR rate for loan against shares is 7.25%
Over 1-year SBI MCLR rate for loan against shares is 2.50%
Note: The interest rates can change with the passage of time.
Loan Tenure/Time for SBI Loan Against Shares?
For Demand loan facility – Loan Tenure of SBI Loan Against Shares – 30 Months (This is the maximum liquidation time).
For Overdraft Loan facility – Loan Tenure of SBI Loan Against Shares – 30 Months (With every year renewal policy).
Examples of EMI Calculations for SBI Loan Against Shares
With An Interest rate of = 10% Per Annum.
SBI Loan Against Shares scheme’s EMI = Per Month Amount to be paid by the customer to the bank.
|Loan Amount||EMI for 6 Months||EMI for 12 Months||EMI for 18 Months||EMI for 30 Months|
|50,000 Rs.||8,578 Rs.||4,396 Rs.||3,003 Rs.||1,891 Rs.|
|1 Lakh Rs.||17,156 Rs.||8,792 Rs.||6,006 Rs.||3,781 Rs.|
|10 Lakhs Rs.||1,71,561 Rs.||87,916 Rs.||60,057 Rs.||37,811 Rs.|
|20 lakhs Rs.||3,43,123 Rs.||1,75,832 Rs.||1,20,114 Rs.||75,623 Rs.|
Charges & Fees in SBI Loan Against Shares Scheme?
- Processing Fees – 0.75% of the loan amount sanctioned + additional GST applied (Also, charges subjected to a minimum of 1000 Rs. Non Refundable amount).
- Review Charges – A 1000 Rs. + additional GST applied (This will only be applicable for overdraft account).
- Account Keeping Charges – As per SBI a 550 Rs. + additional GST charge applied for account keeping, and this will apply for an overdraft facility.
How Can you Apply For SBI Loan Against Shares?
Any existing customer of SBI can apply by both online as well as an offline medium if the customer fulfills all eligibility criteria.
SBI Loan Against Shares online application form apply method
Step1. Open Official website of State bank of India (SBI).
Step2. Hover on the Loans section, and then, click on the personal loans section.
Step3. In the personal loans section click on Loan against securities, and at last click on loan against shares.
Step4. Here, you will found the online application apply button. Click on Apply Now button.
Step5. Now here, we will found a list of all required guidelines for filling up the online application form.
The important steps about whom you will know on the guidelines page are,
- Download the application form
- Emailed at the correct mail address
- Courier the application form to SBI’s mentioned address.
Yes, the scanned copy of the signed application form along with the pledge request form (PRF) is required to email at firstname.lastname@example.org
After then, the hard copy of the signed application form along with the pledge request form (PRF) is required to be courier to the address mention below.
State Bank of India
Specialised Securities Finance Branch (18225),
31, MAHAL IND ESTATE,
Mahakali Caves Rd, Chakala, MIDC, Andheri – East, Mumbai, Maharashtra,
Pin Code – 400093,
Phone No(New): 022 – 26870133/ 34,
Fax No: 022- 26870132
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FAQ – SBI Loan Against Shares
Is any normal SBI customer can apply for an SBI Loan Against Shares scheme?
Absolutely not, to fulfill the required criteria for this loan Please, read the instructions (given above in the complete article).
SBI Loan Against Shares Customer Care/Contact information?
- Visit the nearest SBI Branch to solve your all doubts.
- Toll-free Numbers – 1800112211, 18004253800, 08026599990
- Email – email@example.com, firstname.lastname@example.org
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