Loan Against Shares

Loan Against Shares is an overdraft facility which gives you an option to get quick cash rather selling your investments. You can avail loan against shares by pledging your shares and mutual funds held in Demat form. These shares and mutual fund will be pledged to Chola until the loan is paid back , however the ownership of these will be with you which means that it continues to give dividends and other benefits to the owner. This type of loan is available for a short tenure and can be used for different purposes by the borrower except any speculative use or any anti-social uses.

Benefits of Loan Against Shares

Loan upto 50% against your shares.
Flexible tenure up to 36 months with ZERO pre-closure.
Interest to be paid only on the utilized amount for used period only.
Loan against shares with a minimal turnaround time.
Standard Documentation - Like KYC and agreement.
Around 900+ Approved list of shares.
Funding against mix of Property (residential/commercial )and securities is also available as a structured product.

Features & Benefits

Flexible Tenure

Minimal turnaround time

Standard Documentation

Eligibility and Documentation

Age between 18 years to 70 years
Non-Resident Indian are not eligible
Indian Citizen having a valid Pan card and Aadhaar card

Must have an active demat account
Shares and Mutual Funds in Demat form must be as per Chola’s policy

What is Loan Against Shares and its features?

Loan against Shares is a financing facility where you can avail loan by pledging your shares as per Cholamandalam Investment and Finance Company Limited Policy.
What is purpose of Loan against shares?

Funds drawn from Loan against shares can be for personal or business requirement including investments. It is one of the best way to generate liquidity without selling the Shares. It also saves you from unexpected losses due to market downfall.
Whats is the eligibility criteria for applying Loan against shares?

Indian citizen holding a valid PAN card along with Aadhar Card and between the age of 18-70 years. Non Resident Indians are not eligible.
What is the Loan to Value and how it is calculated?

Loan to value is upto 50% against Cholamandalam Investment and Finance Company Limited Policy approved list of Equity shares. This is calculated on basis of lower of 30 days or previous day market closing price of the share for Retail and HNI Loans.
How much interest does a customer need to pay?

Interest is paid on the utilised amount for the number of days the loan has been availed.The due date for the interest would be the first day of every month till end of tenure/closure of loan.
If a customer is holding Shares in his company's name. Can he avail loan against them?

Yes, in case if the investment is in company's name, the loan has to be taken by company.
Does Cholamandalam Investment and Finance Company Limited Policy support all depositories?

We support depositories that are registered with NSDL and CDSL.
Will valuation be as on date of loan application or as on the date of loan disbursement?

The valuation will be as on date of disbursal as per the valuation method provided by CIFCL.
Can customer release pledged shares partly?

Yes, the Customer can release shares only if the pledged value is more than required collateral value and can also opt for a higher limit by contacting Cholamandalam Investment and Finance Company Limited.
On what criteria will the loan be sanctioned to me?

CIBIL Score and the Value of Shares pledged (the pledged shares should be on the approved list of securities). Credit approval is at the discretion of Chola.
Will any prepayment charges be applied in case of prepayment due to the reason of margin shortfalls?

There are no prepayment charges in case of early repayment.
Can I pre-close my loan by making part payments and without any pre-closure charges?

Pre closure of loan is allowed by making part payments and without pre-closure charges for Individuals.
Should the Margins be maintained every single day? What does the Borrower do in case of margin shortfall?

The margins will be checked on a daily basis and alert message will be sent to the registered mobile numbers /email id during the shortfall. In case of shortfall, the borrower can bring in additional shares to overcome shortfall or make a repayment to extent of shortfall .Customer is always expected to maintain a 50% LTV till the loan maturity and at any point of time.