Loan Against Shares to Help Consolidate Your Debt

Leverage the potential of your securities to pay off your debts

Federal Bank Loan Against Shares

This scheme helps borrowers get access to funds by pledging their shares to the bank. While the main purpose of this loan is to help the borrower to meet any contingencies and personal needs such as a wedding, overseas travel and so on, it can also be used to consolidate the borrower’s debts thereby acting as a consolidation loan.

Features of Loan Against Shares

Why this Loan?

  • The Federal Bank Loan Against Shares is meant for borrowers who want to avail financial assistance by pledging shares for financial exigencies
  • Being a secured loan, borrowers can also avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans

Loan Amount

  • The maximum loan amount allowed by Federal Bank under this loan is Rs. 20 lakh

Interest

  • As of October 2020, the interest rate applicable to this loan may range from 12.50% to 13.00%

Repayment & Margin Money

  • As of October 2020, the repayment period and margin for this loan are not mentioned on the bank’s website. Please talk to a bank representative to get these details before applying for this loan

Security Needed

  • The bank accepts pledging of shares as security for this loan

Processing Charges

  • Federal Bank charges up to 0.25% of the total loan amount with a minimum of Rs. 1,000 for processing this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns

Reference Facts:

  • Federal Bank Website: www.federalbank.co.in
  • Headquarters: Kochi, Kerala
  • Call Centre Toll-Free Number: 1800 425 1199, 1800 420 1199