Frequently Asked Questions
Here are a few questions that we are asked often
and their responses
Any person who is Citizen of India and is currently residing in India can apply. He should have active shares and/ or Mutual Funds which have been approved for loan.
At minimum, the applicant should have :
- Good internet connection,
- Pan Card,
- Mobile linked with Aadhar
- Address proof if, current address if different from what on Aadhar
- Mutual Funds linked with CAMS and having ID of CAMS
Anybody can apply directly by directly clicking on “Apply” on Abhiloans.com
You can check the loan eligibility on eligibility calculator on Abhiloans.com. Simply put the shares or mutual funds you own and check on the eligible loan amount.
Loan Against Securities is loan against marketable securities in which customer pledges his investment in favour of lender and borrow fund to meet his financial and personal requirement without selling his investment.
Customer can take care of all their investment as well as personal needs, meet contingencies meet financial requirements and/ or investment needs. It is the ideal way to get liquidity without liquidating the securities.
- Loan can be availed up to Rs. 10,00,000 (Ten lacs only). For all loans above that please drop a message to [email protected]
- Loan can be availed from Rs 15,000
- Loan Tenor is 12 months
- Only Interest is paid monthly on loan amount
- Daily update on the performance of your portfolio
- Very quick, digital service
Currently there are two types of loans under this category:-
- Loan Against Shares
- Loan Against Mutual Funds
The customer can choose to borrow any loan amount ranging from Rs. 15,000 to Rs. 1,00,00,000.
The customer can apply through our online application.
The customer will get instant approvals.
All loans are sanctioned on the basis of internal policies of Abhi Loans.
Post approval of the loan application, completion of all the documentation you will be disbursed within 24 hrs. T&C apply
With our online application facility, the customer get the benefit of applying from anywhere and complete the whole process.
The application fee is a charge required to be paid for the submission of the application form online. This is required in order to process the loan online.
The Application fees is deducted from the disbursed amount.
Loan to Value (LTV) is the ratio of the outstanding loan to the market value of the securities. LTV is calculated on real time bases.
LTV = Total Loan Outstanding/ Current Value of the securities
The customer can get Loans up from 50% to 75% of the value of Pledged Securities. For shares, the LTV is 50% and for Mutual Funds the LTV is from 50% to 75%.
Interest is calculated on a daily basis on daily outstanding amount which needs to be repaid on a monthly basis.
Abhi Loans has its own approved scrip list and it lends against those scrips alone.
Yes, a customer can avail a loan by pledging his company’s shares post fulfilment of the relevant documentation requirement.
Yes. The customer can avail a loan on these Securities. The customer is required to take all of them as co-borrower / Security Provider.
For a Loan Against Securities, Abhi Loans considers the client’s profile, valuation of pledged securities while calculating the loan eligibility amount.
A customer can repay the loan amount in part or full through RTGS/NEFT at any point of time during the loan tenure.
Yes. A customer can release the same after repaying the loan amount to the effect that the margin is maintained as per requirement.
The customer can choose to pre-close your loan anytime you want after payment of interest and the principal loan amount. There are no pre-closure charges.
All Abhi Loans loans come with the Part-Prepayment facility. With this, the customer can part prepay as much as they want during the tenor of loan.
The pledged securities are valued on real time basis or the closing NAV, given the type of security. The valuation of these securities may change on a daily basis depending on the movement in their prices.
The loan value will be done on the date of the disbursement based the approved LTV. If the security value has increased, higher loan amount will be disbursed and vice versa.
Approved margins need to be maintained daily and any shortfall has to be made good. The customer must immediately restore the security value either by offering additional securities or by prepaying the loan to the extent necessary.
The customer will regularly receive the Valuation Report which shall provide them information on the security value and loan value and separately the details of the shortfall, if any.
If the customer is unable to offer additional securities or pay in the shortfall amount within the stipulated period of 7 (seven) days, then the securities, to the extent necessary for fulfilling the existing shortfall shall be sold on the immediately following Business Day. We advise the customers to ensure maintenance of sufficient margins so as to mitigate the risk of unplanned / untimely sale of securities which may hinder the investments from realising their full potential.
No prepayment charges shall be applied on the amount of loan prepaid due to margin shortfall.
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Our loans against shares and mutual funds, include a minimum repayment period of zero months, as you can pay when you want with NIL prepayment charges, and a maximum repayment period of 1 year, which is renewable.