How Do I Apply for a Loan Against Shares, and What Documents Are Needed?

Applying for a loan against shares is a simple and straightforward process. Here are the typical steps:

Online Application

• Visit the website of banks/Non-Banking Financial Companies (NBFCs) offering loans against shares and find the application form. Most have online application portals nowadays.
• Fill in your personal, financial and shareholding details, along with the required loan amount and tenure.
• Upload soft copies of your Know Your Customer (KYC) and income documents as required.
• Accept the terms and conditions and submit the application form online.

Documents Required

• Identity and address proof (Aadhaar card, PAN card, passport etc.)
• Financial statements, ITRs and bank statements to assess income. Salaried individuals need the latest payslips.
• Demat account statement reflecting your shareholdings. Get the latest statement from your Depository Participant (DP).
• Signed share pledge forms and delivery instructions for dematerialised shares.
• Original share certificates and signed transfer forms for physical shares.

The financial institution will assess your documents and shareholdings. If found in order, they will approve and disburse the loan amount to your bank account shortly. The process is designed for speed and convenience. Maintain adequate margins and timely repayments.

Note: The steps to apply for a loan against shares can vary with financial institutions. Contact your chosen lender to understand the exact process.