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    Here's all you need to know about availing loan against shares from SBI

    Here's all you need to know about availing loan against shares from SBI

    Here's all you need to know about availing loan against shares from SBI
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    By Anshul   IST (Published)

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    State Bank of India or SBI, country's largest lender, offers loans up to Rs 20 lakh against shares to help borrowers in meeting contingencies or for personal needs.

    State Bank of India or SBI, the country's largest lender, offers loans up to Rs 20 lakh against shares to help borrowers in meeting contingencies or for personal needs. The loan can also be taken for subscribing to rights or new issue of shares against the security of existing shares.
    This type of loan will not be sanctioned for speculative purposes inter-corporate investments or for acquiring a controlling interest in company/companies, according to SBI.
    Here are key things to know about SBI's loan against shares:
    Eligibility
    This facility is available for SBI's existing individual customers who have their Demat account with SBI Cap Securities. It is offered as an overdraft or demand loan. The loan can only be availed in a single name. NRIs are currently not eligible for this loan.
    Minimum/maximum limits
    The minimum loan amount one could take is Rs 50,000 and the maximum is Rs 20 lakh. Loans against shares cannot exceed Rs 10 lakh if the purpose is for subscribing to IPOs.
    Margin
    Borrowers will be required to provide a margin amount of 50 percent of the prevailing market prices of the shares being offered as security.
    Processing fee
    The processing fee charged will be 0.75 percent of the loan amount + applicable GST subject to a minimum of Rs 1,000 (non-refundable).
    For an overdraft account, Rs 1,000 plus applicable service tax will be charged.
    Repayment
    Demand loan can be liquidated in a maximum period of 30 months, while overdraft in 30 months (subject to renewal every year).
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