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Loan Against Shares

What is Loan Against Securities ?
Loan Against Securities (LAS) is getting instant liquidity from your investment without selling them. All you have to do is pledge your securities in favour of Motilal Oswal Financial Services Limited (MOFSL).This enables you to enjoy all corporate benefits accrued on your securities and still avail loan against them. No EMI or prepayment charges applicable. Interest will be charged only on the actual amount and that too for the time it is utilized.

Benefits of LAS with MOFSL

  • Exhaustive list of approved securities
  • Loan go up to 75% of securities amount
  • Pay interest only on the amount outstanding and only for the time used
  • Interest is calculated on the daily outstanding balance and debited to your account at the end of every month
  • Can also be availed against open ended mutual fund schemes
  • Enjoy all corporate benefits like bonus, dividends etc accrued on your securities

Account Opening

We at MOFSL understand your needs and help you meet your liquidity requirements. As an Individual or Corporates, you can avail LAS in 3 simple steps:

  1. Open a Trading and Demat account with Trading Member and Depository Participant
  2. Sign Master Loan Agreement with MOFSL
  3. Open Bank Account with a designated bank

Borrowing limit based on your Financials

  • 10 times of latest Income Tax Return
  • One time of your net worth as certified by a CA

Understanding your investing eligibility and funds available can get complicated, so we at MOFSL will calculate your eligibility for you. This information can be accessed any time through your separate web login.

Maintenance Requirements

Minimum maintenance margin requirement is 20 percent on overall portfolio.

Ways to meet Maintenance Margin

  • Deposit of funds by delivering a Cheque to the branch or through Online Fund Transfer
  • Liquidate securities
  • Deposit additional approved stock

Tips to Manage Your Risk

MOFSL encourages you to use margin prudently. The following ways will help you to reduce the risk of margin maintenance call.

  • Borrow against a diversified portfolio of low-volatility securities. This reduces the risk of the drop in value of a single security triggering a margin call
  • Borrow less than the maximum amount allowable in your account. Consider setting your own personal maintenance level
  • Monitor your portfolio, especially during uncertain market conditions, to anticipate a potential decline in value

Interest

Our rates* are competitive and levied on actual utilized amount.

*MOFSL reserves the right to review above rate of interest on monthly basis.

About Motilal Oswal
Motilal Oswal Financial Services Ltd. is a well-diversified financial services group having businesses through its subsidiaries in securities, commodities, investment banking, private equity and asset management.

The driving philosophy of our organization is ‘Solid Research. Solid Advice.’ Our research has won awards and accolades from various institutions over many years. No wonder the ET Now Starmine Analyst Awards 2009 rated our subsidiary as the No.1 Broker. With over 1397 business locations across more than 584 cities, Motilal Oswal is well suited to handle all your wealth creation and wealth management needs.


SMS: MOFSL LAS to 575753
Email: info@motilaloswal.com

Motilal Oswal Financial Services Ltd.
Registered Office: Palm Spring Centre, 2nd Floor,
Palm Court Complex, New Link Road, Malad (West), Mumbai 400064