FAQs - Loan Against Securities

Any customer having 1 single scrip can avail this loan provided the scrip is a part of the approved list of single scrips by Axis Bank. The list of approved scrips can be accessed here.

A customer can get upto 85%* of the actual value of the security pledged by them. The exact amount depends on a couple of factors such as type of securities pledged etc.

You can pledge securities in Demat form such as Shares, Equity Mutual Funds, Debt Mutual Funds, and Bonds. Only the pledged securities will be considered as collateral. No additional collateral can be used to avail this loan.

Yes, customers will be able to receive all bonus/dividends on the securities pledged by them.

Customers can get a minimum of ₹ 25,000 in lieu of Equity securities and ₹ 1,00,000 for Debt and maximum of ₹ 20, 00,000 for Equity and ₹ 2 Cr for Debt instantly from the comfort of their home.

The Reserve Bank of India (RBI) vide its circular no DBR.DIR.BC.No.14/13.03.00/2019-20 on “External Benchmark Based Lending” dated September 04, 2019 and RBI vide circular no. DBR. Dir. No.85/13.03.00/2015-16 on “Interest Rate on Advances” dated March 03,2016 , updated as on September 04,2019 has advised to link all new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises extended by banks with effect from October 01, 2019 to external benchmark which can be one of the following:

- Reserve Bank of India policy Repo rate
- Government of India 3-Months Treasury Bill yield published by the Financial Benchmarks India Private Ltd (FBIL)
- Government of India 6-Months Treasury Bill yield published by the FBIL
- Any other benchmark market interest rate published by the FBIL.

In line with the above circular, Axis Bank has adopted Repo rate as the external Benchmark lending rate with effect from October 01, 2019.

New customer at Repo rate : - All new floating rate loans and credit limits renewed with effect from October 01, 2019 will be linked to Repo rate.

Existing customer at MRR/BPLR/Base rate/MCLR: - Existing loans and credit limits linked to MRR/BPLR/Base rate/MCLR shall continue till repayment or renewal, as the case may be. Only if existing customers approach us and give request for switching from MRR/BPLR/Base rate/MCLR to Repo rate then only it will be changed. Once transitioned to Repo rate, the customer can’t switch back to the old benchmark rates.

All floating rate loans will be linked to Repo rate. The rate offered to you shall be the Repo rate plus spread. It may be noted that the Repo rate would be reset every three months.

Further, the Bank is free to decide the spread over the Repo rate. The spread may undergo a change during the tenure of the loan.

Bank will publish the Repo rate every month on a pre-announced date. The rate applicable to you would be the prevailing Repo rate for that month.

For all loans linked to Repo rate, the reset frequency would be three months.

YES, for all floating rate loans/credit facilities, if customer is on MRR/BPLR/Base rate/MCLR, customer can give request to move to Repo rate. Hence, the benchmark rate and spread shall undergo a change. Since the effective rate is being kept the same, only an administrative fee shall be charged from you.

You are requested to visit the nearest loan center along with the co-applicant(s) and/or guarantor(s), since there would be additional documentation involved.

No, there is no option to move back from Repo rate to Base rate/BPLR/MRR/MCLR.

Applicable Repo rate for each month will be updated on Axis Bank Website.

You will come to know through our Website / SMS / Email/ letter as deemed fit.

Yes, with the repayment of utilised amount, you can anytime foreclose your account. There are no foreclosure charges.

Yes, you can avail digital Loan against securities if you have demat account of NSDL. For loan against Mutual Funds anyone can apply who is registered with either KFIN/CAMS. But we are working on accommodating all customers in the upcoming versions of this product. Meanwhile, please reach out to your nearest branch to gather details on the same.

Customer can know the drawing power/credit limit while processing the application. Also, after taking loan, customer can check drawing power by logging into Mobile Banking Application or Internet Banking.

Yes, you can enhance the drawing power by pledging more securities.

You can repay the loan by transferring the funds from any savings account to your overdraft (OD) account using IMPS/NEFT or RTGS or by depositing a cheque/DD to your overdraft account. Pay now using Axis bank Open Mobile app Funds transfer service.

You need to repay the interest accrued on utilized amount by 1st of every month. However, principal amount can be paid back anytime during the loan tenure.