Established in the year of 1993, Axis Bank is the 3rd largest private banking institution with over 5,100 branches in India. The bank also has 6 Virtual Centres with more than 1,500 virtual relationship managers actively assisting various customers. Additionally, the bank provides a variety of financial products, including term deposits, loans against securities and more.
In this blog, we will walk you through a comprehensive guide on Axis Bank loan against securities while highlighting all the associated details that you need to know.
What Is an Axis Bank Loan Against Securities?
Axis loan against securities is one of the most convenient ways of availing financial assistance against marketable assets. Under this facility, you have to pledge your collaterals like mutual funds, shares, and others in the favour of the bank. In return, you can avail an overdraft (OD) facility, requiring you to pay the interest only on the amount utilised. The loaned amount can be used for any of your personal use.
Axis Bank Loan Against Securities Interest Rates 2024
Refer to the below table for discovering the Axis Bank loan against securities interest rate comprehensively:
| Axis Bank Loan Against Securities Interest Rates | ||||||
| Sr. Number | Product | Interest Rate (Per Annum) | ||||
| 1 | 24×7 Loan Against Securities (Digital) | Repo Rate | Spread Over Repo Rate | Effective Interest Rate | Reset | |
| 6.50% | 3.49% | 9.99% | Quarterly revision or as decided by the bank, whichever is earlier | |||
| 2 | 24×7 Loan Against Securities (Physical) | Repo Rate | Spread Over Repo Rate | Effective Interest Rate | Reset | |
| 6.50% | 5.00% – 7.25% | 11.50% – 13.75% | Quarterly revision or as decided by the bank, whichever is earlier | |||
How to Apply for an Axis Bank Loan Against Securities?
You can easily apply for an Axis Bank loan against securities via online or offline methods. To ease your overall application process, the bank has introduced a 24×7 loan against securities which can be applied in just 3 minutes. In case you are looking for steps on how to apply for a 24×7 loan against securities with the Axis Bank, read below.
- Step 1: Visit the official website of Axis Bank.
- Step 2: Use your mobile/net banking credentials to successfully log in to their portal.
- Step 3: You have to select the securities and their units to pledge.
- Step 4: You have to confirm the drawing charges, power, and account to pay with.
- Step 5: To confirm the loan, enter the OTP sent to your registered phone number.
Features and Benefits of Axis Bank Loan Against Securities
Axis loan against securities comes with numerous features and benefits. You can easily enjoy the following features and benefits by applying for this loan facility.
- You might get high-value loans against securities for up to 85% of security value.
- Customers have to pay interest on the amount utilised.
- You will get a minimum amount of ₹25,000 for equity.
- The minimum amount of loan you can get against debt mutual funds is ₹1,00,000.
- A minimum loan amount of ₹50,000 is available for bonds.
- The bank offers interest rates ranging from 10.50% in case of securities processed physically.
- Loan against securities Axis Bank is an overdraft facility.
- Axis Bank does not ask for any prepayment or pre-closure charges.
Eligibility Criteria of Axis Bank Loan Against Securities
Here are the eligibility criteria you need to fulfil to apply for an Axis Bank loan against securities:
1. Eligibility For 24×7 Loan Against Securities
- Individuals
- Commercial entities
- Corporate entities
- An applicant must be a current and savings account holder of Axis Bank.
- Having a Demat account with Axis Securities under NSDL is mandatory.
- The Demat account must be under a single name.
2. Eligibility for Axis Bank Loan Against Shares and Mutual Funds (For Individuals)
- Indian residents (above 18 years old)
- Non-resident Indians or NRIs (Above 18 years old)
3. Eligibility for a Loan Against Debt Mutual Funds (For Entity)
- Indian residents
- HUFs (Hindu Undivided Families)
- Partnership Firm
- NRIs (Non-residential Indians)
- Private limited companies
- Sole proprietorship
4. Eligibility for Loan Against a Life Insurance Policy (For Individuals)
- Indian Residents
Documents Required for Axis Bank Loan Against Securities
You can easily fulfil your financial requirements with an Axis Bank loan against securities without liquidating your investments. Before applying for a loan against securities, go through the following necessary documents that you will need.
- Latest statement of holding for mutual funds
- KYC documents (Identity and Address proof)
- Bank statement (last 6 months)
- Pledge creation form
- Guarantor form (in case of securities held jointly)
What Are the Terms & Conditions for Axis Bank Loan Against Securities?
If you are searching for the terms and conditions for an Axis Bank loan against securities, read below.
- Axis Bank will charge a processing fee of 0.15% of the loan amount.
- The bank will provide the loan for a tenure of 12 months.
- After you submit the necessary documents along with the pledge form, Axis Bank will disburse the loan amount.
- You must let the bank know about any relocation or change of job (if any).
- The margin requirement will be reviewed at an interval of time.
Detailed List of Approved Securities from Axis Bank
Have a glance at a detailed list including a wide range of approved securities against which you can avail a loan.
| Collateral | LTV (Loan-To-Value) | Overdraft (OD) Facility |
| Shares | 50% – 60% | Up to 50% of the value of the share |
| Convertible Debentures/Listed Bonds | 50% – 60% | Up to 70% of the marketplace |
| Equity Mutual Fund | 50% – 60% | Up to 60% of the NAV |
| National Savings Certificates (NSC) | Reach out to your nearest Axis Bank branch to proceed with a non-digital loan application | |
| Debt Mutual Fund | 70% | Up to 85% of the NAV |
| Life Insurance Policies | Reach out to your nearest Axis Bank branch to proceed with a non-digital loan application | Connect with your nearest Axis branch |
Final Word
Now that you have a clear idea about the Axis Bank loan against securities, you can easily consider availing this facility in times of financial emergency. It is a type of secured loan that can be availed for travelling, weddings, education or any other personal purposes. Besides, you can avail this LAS scheme with Axis Bank as a consolidation loan to pay off high debts.
FAQs
By choosing the Axis Bank LAS facility, you can receive up to 85% of the actual value of the security you pledged. The loan amount depends on the type of securities and several other factors.
Every month, the Axis Bank will publish the repo rate on a pre-announced date.
You can navigate through the Axis Bank’s official website and get to know about the change in your rate. Besides, you can get to know your changed rate via SMS or Email.
No, Axis Bank does not give any solvency certificate to its customers.
In the case of Axis Bank, you can get a loan amount ranging from ₹25,000 (minimum) to ₹25 crore (maximum).
| Loan Against Securities 2024 | |
|---|---|
| ICICI Bank Loan Against Securities | Tata Capital Loan Against Securities |
| Axis Bank Loan Against Securities | HDFC Loans Against Securities |
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
