What are all the documents required for a loan against securities?

When applying for a loan against securities, you’ll need to provide basic KYC details along with papers that confirm your financial standing and ownership of the pledged assets. Here are the common document categories: Identity proof: Aadhaar card, passport, voter ID, or driving license. Address proof: Aadhaar card, passport, voter ID, or driving license. PAN card: Mandatory for all types of applicants. Bank statements: Recent statements to establish financial history. Proof of securities: Demat account statement or mutual fund statement. The exact set of documents can differ depending on whether you are applying as an individual, business entity, or trust, and on the type of securities being pledged.

What are the common reasons for documents getting rejected by Tata Capital?

Documents submitted for a loan against securities may sometimes get rejected if they don’t meet the required standards. Common reasons include: Incomplete or missing information Mismatched details between documents and the application form Expired identity or address proof Unclear or illegible photocopies or scans Documents that are not self-attested where required Ownership proof of securities is not valid or updated

Documents Required for Loan Against Securities

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List of Documents Required for Loan Against Securities

Online Journey

PAN & Aadhaar Card details
Mobile No. linked to Aadhaar card

Offline Journey

PAN CARD
ID : Aadhaar Card / Passport / Driving Licence/ Voter ID
ADDRESS : Aadhaar Card / Passport / Driving Licence/ Voter ID
SIGNATURE : Pan card / Passport / Banker sign verification

ID : Aadhaar Card / Passport / Driving Licence/ Voter ID
ADDRESS : Aadhaar Card / Passport / Driving Licence/ Voter ID
SIGNATURE : Pan card / Passport / Banker sign verification

Any two of Following (Should contian address on the documents)

Registration Certificate
Certificate/ license issued by the Municipal authorities under Shop & Establishment Act
CST/VAT/GST Certificates
Complete Income Tax Return in the name of the sole proprietor with Firm Income
Sales and Income tax returns

ID : Aadhaar Card / Passport / Driving Licence/ Voter ID
ADDRESS : Aadhaar Card / Passport / Driving Licence/ Voter ID
SIGNATURE : Pan card / Passport / Banker sign verification
Partnership Deed
Registration Certificate (only in case of registered Partnership Firms)
PAN of the partnership firm
LLP Resolution (if LLP)
Authority Letter from Partners

ID : Aadhaar Card / Passport / Driving Licence/ Voter ID
ADDRESS : Aadhaar Card / Passport / Driving Licence/ Voter ID
SIGNATURE : Pan card / Passport / Banker sign verification
Certificate of Incorporation
Memorandum & Articles of Association
PAN of the Company
Board Resolution

ID : Aadhaar Card / Passport / Driving Licence/ Voter ID
ADDRESS : Aadhaar Card / Passport / Driving Licence/ Voter ID
SIGNATURE : Pan card / Passport / Banker sign verification
Registration Certificate
Trust Deed
PANCARD of Trust
Trust Resolution

ID : Aadhaar Card / Passport / Driving Licence/ Voter ID
ADDRESS : Aadhaar Card / Passport / Driving Licence/ Voter ID ;
SIGNATURE : Pan card / Passport / Banker sign verification
Hindu Undivided Family Letter (Annexure 2) signed by All Co-parceners
PAN Card of HUF
Bank Statement of HUF as a Address Proof
CA Certified Letter confirming all Co-parceners
HUF Authorisation letter signed by All Co-Parceners

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How to Apply for Loan Against Securities?

How to Apply for Loan Against Securities Offline?

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How to Apply for Loan Against Securities Online?

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Get swift access to funds by applying for a Loan Against Securities through our online application process. In fact, if you don’t have the time to finish the application, we may call you to assist you with the process.

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Popular FAQs

You can pledge a wide range of securities to avail of a loan against securities. Lenders typically accept instruments that are stable and easy to value, but the specific eligibility may differ based on each lender’s approved list.

It’s important to note that the list of acceptable securities can vary, so you should always confirm with your lender before applying. Commonly accepted securities include:

Equity shares of publicly traded companies in demat form (as per the lender’s approved list)
Mutual funds
Non-Convertible Debentures (NCDs)
Exchange-Traded Funds (ETFs) and bonds (including government schemes)
Life insurance policies
Fixed maturity plans

Yes, you can apply for a loan against securities jointly with a co-applicant. In fact, this arrangement is often necessary if the securities being pledged are held by a close relative such as a spouse, parent, child, or sibling.

In such cases, the co-applicant’s participation ensures proper ownership validation and legal compliance. Moreover, they are required to sign the loan agreement along with you, making both parties equally responsible for the terms and repayment of the loan.

The eligibility criteria for a loan against securities may vary slightly between lenders, but the key requirements usually include:

Age: 18 to 70 years (some lenders may extend up to 90 years).
Residency status: Indian residents are eligible.
Employment type: Salaried individuals, self-employed professionals, partnerships, public/private companies, trusts, and proprietorship firms can apply.
Demat account and collateral: You must hold approved securities in a demat or mutual fund account.
Depository requirement: Securities must be maintained with recognized depositories like NSDL/CDSL or transfer agents such as CAMS or KFIN.

When applying for a loan against securities, you’ll need to provide basic KYC details along with papers that confirm your financial standing and ownership of the pledged assets. Here are the common document categories:

Identity proof: Aadhaar card, passport, voter ID, or driving license.
Address proof: Aadhaar card, passport, voter ID, or driving license.
PAN card: Mandatory for all types of applicants.
Bank statements: Recent statements to establish financial history.
Proof of securities: Demat account statement or mutual fund statement.

The exact set of documents can differ depending on whether you are applying as an individual, business entity, or trust, and on the type of securities being pledged.

Documents submitted for a loan against securities may sometimes get rejected if they don’t meet the required standards. Common reasons include:

Incomplete or missing information
Mismatched details between documents and the application form
Expired identity or address proof
Unclear or illegible photocopies or scans
Documents that are not self-attested where required
Ownership proof of securities is not valid or updated

Tata Capital offers flexible loan amounts under its loan against securities offering, with the exact sanction depending on the value of the securities you pledge and the channel through which you apply. For customers applying through the offline channel, the loan amount can range from Rs. 75,000 to as high as Rs. 40 crores. If you choose the digital channel, you can access loans starting from Rs. 25,000 up to Rs. 5 crores, making it convenient for both small and large funding needs.

The LTV ratio in a loan against securities refers to the percentage of your pledged security’s market value that the lender allows you to borrow. For example, if your securities are worth Rs. 10 lakhs and the LTV offered is 60%, you can avail of a loan of up to Rs. 6 lakhs. At Tata Capital, the LTV ratio generally falls between 50% and 70%, depending on factors such as the type of security, its liquidity, and overall market performance.

Tata Capital keeps the loan against securities process simple and fast. Once you submit your application and documents, they’re verified quickly, and approval usually follows without much delay. After approval, the money is released to your account within one to two working days. This way, you can access funds on time while continuing to hold on to your investments.

Tata Capital offers loans against securities at attractive fixed interest rates, ensuring stability and predictability in your repayments. The rates typically starts from 9.5% to 14% per annum, depending on factors such as the type, quality, and quantity of securities you pledge. Since the interest is fixed, it remains unchanged throughout the loan tenure, allowing you to plan your finances with greater certainty and avoid concerns about market-linked fluctuations.

A loan against securities from Tata Capital is generally structured as a hybrid term loan with a revolving credit facility, giving you flexibility in usage and repayment. The standard tenure is one year, with an option to renew upon maturity. You can withdraw funds from your revolving credit account as needed, and interest is charged only on the amount you actually use, not on the full sanctioned limit. Principal repayment can be made at your convenience, while interest payments are typically due monthly, with convenient options like NACH/e-NACH for hassle-free processing.

Yes, Tata Capital allows you to pre-pay or foreclose your loan against securities at any time without any additional charges. This gives you the freedom to repay your loan ahead of schedule if you have surplus funds, helping you save on future interest costs. The process is simple and transparent, ensuring that you can manage your loan in a way that best suits your financial needs.

Yes, you can use mutual funds as collateral to secure a loan against securities with Tata Capital. Both equity and debt mutual funds are generally accepted, provided they are part of the lender’s approved list. By pledging your mutual fund units, you can access liquidity without redeeming your investments, allowing them to continue growing while you meet your financial needs.

Yes, you can use a mix of securities, such as shares, mutual funds, and bonds, to apply for a loan against securities. Tata Capital will look at the type and quality of each security before deciding the loan amount. Having a diverse portfolio can sometimes increase your overall eligibility, while your investments continue to stay intact and grow. Final approval depends on the lender’s policies and the approved list of securities.

You might be able to get a top-up on your existing loan against securities, depending on how much you’ve already borrowed, the current value of your pledged securities, and Tata Capital’s policies. To know for sure, you’ll need to check with Tata Capital, as we review your account and let you know if you qualify for a higher limit.