Loans against Securities FAQs

Who can avail of an ICICI Bank Loan Against Securities?


What are the minimum and maximum loan amounts?


  • You are given a drawing power up to 50% of the value of the shares.
  • Since the market price of the scrips keep fluctuating, the scrips are revalued weekly (every Friday), or more frequently if required, and the drawing power will be revised accordingly. If the new drawing power is less than the outstanding in the current account, you would be required to put in the difference amount or pledge more shares to regularize the account. On the other hand, if the drawing power rises, the limit available to you also automatically increases.
  • Minimum loan amount is Rs 1 lakh.
  • Maximum loan amount is Rs 20 lakh.
  • The loan is applicable for a year and renewable at the end of each year.


Mutual Funds

  • 50% lending on the NAV.
  • Minimum loan amount is Rs.1 lakh.
  • Maximum loan amount is Rs. 20 lakh.
 


Life Insurance Policies

  • Minimum Loan amount is Rs.50000
  • Maximum loan amount is Rs. 5 Crore
 


UTI Bonds

  • Minimum Loan amount is Rs.50000
  • Maximum loan amount is Rs. 5 Crore
 


KVP/NSC

  • Minimum Loan amount is Rs.50000
  • Maximum loan amount is Rs. 5 Crore

What are the loan tenure options?


The initial tenure is for a year. At the end of the year, it will automatically be renewed for another year unless we receive intimation in writing from you not to do so.

What are the lending rates? How much shall I pay for this facility?


ICICI Bank Loans Against Securities comes to you at attractive interest rates, which are based on the trends prevailing in the market at the time of the loan. You pay only when you use the money and for the number of days the money is used. The rates vary according to the product-variant.

How is the interest on my account calculated?


In the overdraft account, interest will be charged only on the amount you draw and for the period that you draw. Interest will be charged on a daily basis, but will be debited to your account only once a month.

Do I have to pay any additional fee?


Yes, there is a nominal processing fee.

What are the documents that I need to submit?


  • Your loan will be sanctioned on completion of all the documents.

  • You will be asked to fill the loan agreement and complete the account opening formalities.

You will be able to enjoy all the benefits of a current account such as a

How do I approach ICICI Bank for a Loan?


You can approach us in any of the following ways

How much time will it take for my loan to be approved?


It takes five business days for the approval and for the setting of the credit limit in your account.

Is a personal guarantor a must?


No.

What security/ collateral do I have to provide?


No additional security/ collateral need to be provided, apart from the securities against which the loan is granted.

How do I repay the loan?


You can repay the loan by cash, cheque or demand draft.

Can I prepay my loan?


Yes. Please note that there are no prepayment charges.

Do I need to open an account with ICICI Bank for availing of and/or servicing the loan?


Yes, you need to open an ICICI Bank Overdraft Current Account, in which the credit limit for you will be set.

What are the stages involved in taking a loan?


The various stages involved are as follows:

  • Signing of the loan agreement
  • Pledging of the securities in our favour
  • Opening the Current account
  • Once the Current account is opened, you can avail of the credit limit.

If I do not meet any of the criteria for the loan, can I still avail of a loan?


Yes, you can still avail of a loan based on your profile, credit strengths, etc. Please feel free to contact us and we can advise looking at the merits of your case.

Where will my account be opened?


At any branch specified by you. However, you can operate out of any of our branches under the Anywhere Banking facility.

How do I get to know my Credit Limits?


You may check the Total Credit limit, Credit Limit against individual securities, Details of securities pledged and Outstanding amount through any of the following mediums:

  • Call our 24 hour Customer Care Centre
  • Visit any of the nearest ICICI Bank branches
  • Infinity (Internet Banking)
  • Register your E-mail ID for weekly Interim Valuation Reports(IVR) by calling 24 hour Customer Care Centre or visiting our nearest branch.

Am I required to have a Demat Account with ICICI Bank?


No, you can pledge your securities irrespective of whether you have a Demat Account with ICICI Bank or any other depository. To open a Demat Account, click here.

How do I pledge more Securities (from the approved list)? How long does it take?


Submit the pledge request forms with your Depository Participant , with whom you hold your Demat Account. Once your DP correctly initiates the pledge request in the favour of ICICI Bank (mentioning your LAS account number as the Agreement no.), the limits will be set within next 24 working hours. "

What about my Dividend and Bonus?


The Dividend and Bonus on your shares will continue to accrue to you.

I have shares that are in the approved list, but they are in physical form. Can I get a loan against them?


Yes, but you would have to first convert them into the dematerialised form. All you have to do is to get your shares dematerialised through a depository account with ICICI Bank/ any other bank.

Will more shares be included in the approved lists?


Yes, these lists are updated on a periodic basis.

Services Charges & Fees