Looking for a Loan Against Securities to consolidate your debts from State Bank of India?

You have landed at the right place. This page contains all the information you will need on State Bank of India’s Loan Against Shares.

State Bank of India Loan Against Shares

This loan helps borrowers get access to funds by pledging their shares to the bank. While this secured loan can be used to meet any financial needs such as a wedding, overseas travel, higher education and so on, it can also be used to consolidate high-interest debts.

Features of SBI Loan Against Shares

Why this Loan?

  • The State Bank of India Loan Against Shares is meant for borrowers who want to avail financial assistance by pledging shares to meet their financial needs
  • Borrowers can also avail this scheme as a consolidation loan and pay off their debts
  • This loan can be availed as an overdraft or demand loan

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan is Rs. 20 lakh


  • The applicable interest rate on this loan is defined as the sum of three factors namely, Marginal Cost of Funds based Lending Rate (MCLR) and Spread. As of October 2020, the interest rate applicable to this loan is 9.50%


  • This loan must be repaid within 30 months

Security Needed

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

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 50% of the face value of the prevailing market price of the shares

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • The bank charges 0.75% of the loan amount with a minimum of Rs. 1,000 for processing this loan

Documents Needed for Individuals (Salaried and Self-employed)

  • 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
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Reference Facts

  • State Bank of India Website: www.sbi.co.in and www.onlinesbi.com (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 11 2211, 1800 425 3800