In our series of loan against security products, we will focus on the HDFC bank loan against security in this discussion. Like other useful loan products offered by the HDFC bank, the HDFC loan against securities is an extremely useful product to let the customers enjoy liquidity from their investments without selling them. To avail the HDFC loan against security, you can pledge your securities like equity shares, MF units, KVP, Non convertible debentures, RBI bonds, Gold ETF, LIC policies issued by selected insurance companies and NSC. So as is apparent, there are various types of approved securities which you can use as collateral to avail the HDFC bank loan against security.

When applying for the HDC loan against securities, you also get the benefits like speedy processing, no post dated cheques and no pre-payment charges, to name a few. However, the bank charges 2% of the overdraft limit as the processing fee for the HDFC loan against security. Amongst some other charges applicable in a HDFC loan against securities scheme are nominal annual maintenance charges, pledge creation and de-pledge fees. The minimum loan amount is Rupees 200000, which can go up to a maximum of Rupees 2000000 for the HDFC loan against security. Another beneficial aspect of the HDFC bank loan against security is that the interest is calculated on a daily reducing basis. So that means you don’t have to pay a single day worth of extra interest on your HDFC loan against securities. That’s a nice feature considering that most of the other loans charge interest on monthly basis. Since the rates keep changing with time, it is strongly advised to check with the bank for the prevailing rates on the HDFC loan against securities.

When you are sanctioned a HDFC loan against security, the bank opens a current account for you with all the usual bank account features like ATM, Net banking, Phone banking etc. Being a customer of HDFC loan against security, you also get an international debit card free of cost. Moreover, when you pledge your shares and avail the HDFC bank loan against security scheme, the shares remain in your name so that you can continue enjoying the benefits as a shareholder and still have the funds you needed.

You can apply for a HDFC bank loan against security online at the bank’s website. There is some minimal basic documentation required which a bank’s representative will collect from you at your convenience.