What are the fees and charges associated with a loan against securities?

A loan against securities from Tata Capital comes with certain fees and charges in addition to the interest rate. These charges cover processing, maintenance, and penalties in case of defaults. While some charges are standard, others may vary depending on the type of security and the terms of your loan agreement. For the latest details, it’s best to refer to the Tata Capital website. Common charges include: Processing fees: Up to 3% of the sanctioned loan amount + GST Stamp duty: At actuals Lien creation or revocation (mutual funds): Rs. 350 per lien creation and Rs. 100 per invocation/revocation Annual maintenance/renewal charges: Up to 3% of the loan amount + GST Late payment charges: 3% per month on overdue amounts (36% p.a.) Cheque bounce charges: Rs. 600 per instrument per instance Repossession/liquidation charges: 0.35% of the sale consideration + brokerage Pre-payment/foreclosure charges: NIL

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Loan Against Securities
Rates and Charges

Loan Against Securities Interest Rates & Charges

Rates & Charges

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Overview Required Documents Rates & Charges Repayment

Loan against securities interest rates apply to the loan amount and the loan tenure. These rates are calculated daily as a percentage of the principal loan amount and vary from one lender to another.

Tata Capital offers a loan against shares, mutual funds, and bonds. Our loan against shares interest rates are the most affordable based on your loan eligibility, monthly income, credit score, and security type.

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Loan Against Shares Rates and Charges List

Type of Charge	Loan against shares applicable rate
Interest rate	9.5% to 14%* *Depending on loan amount and quality of securities
Non-refundable loan processing charge	Up to 3% of the sanctioned loan amount + GST
Stamp duty	At actuals
Lien creation charges - LAS - MF	Rs. 350 per Registrar and Transfer Agent (RTA) per lien creation
Lien invocation/revocation charges - LAS - MF	Rs. 100 per RTA per lien invocation/revocation

*Terms & Conditions apply.

Penal Charges

Default in payment of amounts due as per the facility documents:

This is a charge for late payments, calculated based on the number of days your dues remain unpaid.

3% per month on overdue amount (36% p.a.)

Dishonour of any cheque/
payment instruments

These are the charges that are levied in case of a repayment bounce.

Rs. 600/- per instrument per instance

Mandate Rejection

NIL

Non-creation of security

NIL

Note: *(GST, other government taxes and levies as applicable, will be payable on all charges)

Other Charges

We also levy the following Contingent charges on our loans against securities:

Type of Charge	Applicable Rates
Annual maintenance charges/ renewal charges:	This is a yearly fee charged for maintaining or renewing the loan account. Up to 3% of the loan amount + GST (as per the loan agreement)
Repossession charges/liquidation charges	Fees charged by the lender for recovering or selling the pledged shares in case of loan default or margin shortfall. 0.35% of sale consideration + brokerage applicable
Collection Charges	NIL
Prepayment/ Foreclosure charges	NIL

Note: GST, other government taxes and levies as applicable, will be payable on all charges.

Loan Against Shares Eligibility Criteria

Here’s the eligibility criteria for a loan against shares.

Age: The applicant must be between 18 and 70 years old.
Nationality: The applicant must be an Indian citizen.
Employment type: Both salaried and self-employed individuals, including proprietorship, partnership, trust, HUF, and companies, are eligible.
Share ownership: The shares held in a demat account must be in the applicant’s name.
Minimum portfolio value: The applicant must hold a minimum portfolio value of Rs. 50,000.
Credit score: A high credit score and strong repayment capacity are preferred.

FAQs about Loan Against Shares

Interest rates for a loan against securities at Tata Capital usually Starts from 9.50% per annum. The exact rate offered to you will depend on factors such as the type of securities you pledge, the loan amount you are seeking, and your overall credit profile. By assessing these aspects, Tata Capital ensures the rate is aligned with both the risk and the value of the pledged investments.

The interest rate on a loan against securities is decided after considering several factors linked to both the borrower and the pledged assets. Key elements include the type and value of the securities, the loan amount requested, the repayment tenure, and the borrower’s overall credit profile. Securities that are more volatile, such as equity shares, usually attract higher rates compared to more stable instruments like bonds or mutual funds. This helps lenders balance the risk while offering you fair and transparent pricing.

A loan against securities from Tata Capital comes with certain fees and charges in addition to the interest rate. These charges cover processing, maintenance, and penalties in case of defaults. While some charges are standard, others may vary depending on the type of security and the terms of your loan agreement. For the latest details, it’s best to refer to the Tata Capital website. Common charges include:

Processing fees: Up to 3% of the sanctioned loan amount + GST
Stamp duty: At actuals
Lien creation or revocation (mutual funds): Rs. 350 per lien creation and Rs. 100 per invocation/revocation
Annual maintenance/renewal charges: Up to 3% of the loan amount + GST
Late payment charges: 3% per month on overdue amounts (36% p.a.)
Cheque bounce charges: Rs. 600 per instrument per instance
Repossession/liquidation charges: 0.35% of the sale consideration + brokerage
Pre-payment/foreclosure charges: NIL

No, Tata Capital does not levy penalties or additional charges for pre-paying or foreclosing a loan against securities. You have the flexibility to close your loan whenever you choose without incurring extra costs. Common charges you should still be aware of include:

Processing fees
Annual maintenance charges
Late payment charges

Renewal charges for a loan against securities depend on the lender and the terms outlined in your loan agreement. At Tata Capital, renewal charges can be up to 3% of the loan amount plus GST. Since these charges may vary based on the specifics of your loan, it’s best to review your agreement or confirm directly with Tata Capital for the most accurate details.

The usual tenure for a loan against shares is one year, with the option to renew at the end of the term. While one year is standard, the actual minimum and maximum duration may vary based on the lender’s policies and the type of securities pledged. At Tata Capital, you can renew your loan if needed, subject to approval and applicable charges.

The LTV ratio is the percentage of your pledged security’s market value that a lender allows you to borrow. At Tata Capital, this usually ranges between 50% and 70%, depending on the type of security. The LTV directly impacts how much loan you can access:

A higher LTV means greater borrowing capacity.
On the other hand, a lower LTV means a reduced loan limit.
Changes in market value can increase or decrease your available limit.

Tata Capital regularly revalues your pledged securities portfolio to account for market fluctuations and ensure the loan remains adequately secured. The revaluation is typically done on a daily basis, though the exact frequency may depend on the type of securities you have pledged. This ongoing assessment helps determine your eligible loan limit and ensures compliance with regulatory and risk management norms.

If the market value of your pledged securities falls sharply, Tata Capital may issue a margin call. This means you’ll be asked to either provide additional approved securities or repay part of the outstanding loan to restore the required LTV ratio. If the shortfall is not addressed within the stipulated time, the lender may liquidate part of your pledged securities to cover the exposure and safeguard the loan.