Get ICICI Bank Loan Against Securities Online 2024

Instead of liquidating one’s investments, it is prudent to get a loan against securities to fulfil any financial needs. Loan Against Securities or LAS, is a unique type of loan that one can avail against their pledged securities as collateral with a bank. 
ICICI Bank, with 5,900 branches in India and a notable presence in 17 other countries, allows its customers to raise instant funds against insurance, mutual funds, shares, etc. without selling them. To know more about ICICI Bank loan against securities, continue reading this blog.  

What Is an ICICI Bank Loan Against Securities?

Loan against securities is a type of loan that ICICI Bank grants to its customers against securities like mutual funds, insurance policies, bonds, and shares as collateral. 

The bank provides this loan as an overdraft facility. Thus, customers can withdraw any amount within a specific loan amount which the value of the pledge generally determines.  

ICICI Bank Loan Against Securities Interest Rates

Here is the table with ICICI Bank loan against securities interest rate effective for accounts opened during the financial year 2023-2024. 

Note: The mean rate is the computed basis sum of the number of accounts opened/sum of each rate of interest charged.

How to Apply for ICICI Bank Loan Against Securities?

To avail loan against your securities at ICICI Bank, you can visit any branch near you where a bank representative will help you throughout the application process. However, you can apply online, by following the steps given below: 

• Step 1: Visit the official website of ICICI Bank. 
• Step 2: On the top menu bar, find out the ‘Loans’ option. 
• Step 3: A drop-down menu containing multiple loan options will open. Select ‘Loan Against Securities’. 
• Step 4: On the new page, you will see options like ‘Loan Against Securities’, ‘Insta LAS’, ‘Loan Against Mutual Funds’, etc. Click on the required option. 
• Step 5: Click on the ‘Apply Now’ button. A login portal will open.
• Step 6: Enter your registered credentials. 

Follow further instructions that the system provides and complete the process to successfully avail LAS facility at ICICI. 

Features and Benefits of ICICI Bank Loan Against Securities

Here are some of the features and benefits of ICICI Bank loan against securities. 

1. By choosing this facility, you can avail up to 50% of the pledged shares as a loan amount with a maximum limit of ₹20 lakhs. 
2. The loan will be sanctioned as an overdraft facility. 
3. ICICI Bank offers loans against a list of shares that it approves. 
4. The bank levies interest on the utilised amount and for the utilised period only. 

Eligibility Criteria of ICICI Bank Loan Against Securities

Go through the criteria below to see if you are eligible for ICICI Bank loan against securities. 

1. The age of the applicant should be between 18 and 75 years old. 
2. Applicants should have a valid mail ID and mobile number. 
3. Subscription to a telephone (landline) either from office or residence is necessary. 

Documents Required for ICICI Bank Loan Against Securities

Apart from the loan application form and two passport-size photographs, these are the documents that an applicant will need to apply for an ICICI Bank loan against securities. 

1. Passport 
2. Voter ID card
3. PAN card
4. Driving Licence 
5. Aadhar card
6. NREGA job card
7. Simplified Measures Account Details 
8. Salary slip (last 3 months) 
9. Form 16 or income tax returns 
10. Computation of income (last 2 years)
11. Profit and Loss Account 
12. Balance Sheet 
13. Registration Certificate 
14. Income Tax Challan/TDS Certificate/Form 26AS
15. IT Assessment 

What Are the Terms & Conditions for ICICI Bank Loan Against Securities?

Following are the terms and conditions of ICICI Bank loan against securities. 

1. The bank sanctions the maximum loan amount depending on the type of security that a borrower pledges.
2. The loan amount is capped at 50% of the value of security. 
3. Interest is only charged on the loan amount for the duration a borrower utilises it. 
4. Calculation of interest happens on a daily basis and gets debited on the last working day of every month to a borrower’s current account. 
5. Penal charges (applicable ICICI loan against securities interest rate + 6% p.a.) are applicable for the amount a borrower draws more than the drawing power. 
6. There are no applicable foreclosure charges.

Detailed List of Approved Securities From ICICI Bank

Have a look at all the securities that ICICI Bank approves for loan against investment facility: 

1. Demat Shares 

ICICI Bank grants loans only against the list of approved scrips. Only individuals can apply for loans against demat shares. The bank has specifically excluded sole proprietors, partnership firms, companies, and Hindu Undivided Families (HUFs). 

2. Mutual Fund Units  

ICICI Bank approves loans against the list of mutual funds/schemes that it approves. While individuals can only apply for equity-oriented funds, whereas ICICI loan against mutual funds such as debt funds/ETF/EMP are applicable to all individuals, sole proprietors, partnership firms, companies, and Hindu Undivided Families (HUFs). 

3. Life Insurance Policies 

Individuals, Hindu Undivided families (HUFs), partnerships, companies, and sole proprietorships can apply for life insurance policies. The bank will grant loans only against the list of insurance policies that it approves. 

4. GOI Bonds 

Individuals and Hindu Undivided families (HUFs) can apply for loans against GOI Bonds. 

Final Word

Now that you have gained insight on ICICI Bank loan against securities, you can make an informed decision when you need instant liquidity. If you opt for this loan, you will get a personalised chequebook and access to mobile banking and internet banking facilities after filling ICICI loan against securities agreement and completing the account opening formalities. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.