SBI loan against shares: check eligibility, minimum and maximum loan amount, processing fees and other details


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The State Bank of India (SBI) offers a loan for shares. The country’s largest lender offers the loan to its existing individual clients who have a Demat account with SBI Cap Securities. This loan is granted to meet unforeseen expenses and other contingencies. As part of this offer, SBI grants a loan of up to 20 lakh against shares of clients. An SBI client having an account with SBI Cap Securities can also benefit from a loan for his personal needs or to subscribe to rights or issue new shares against his holdings of shares. This is a short / sight loan with a maximum repayment schedule of 30 months. SBI clients requesting this loan must provide a margin amount of 50% of the prevailing market price of the shares offered as collateral, which constitutes the pledge of the matte shares against which the loan is sanctioned.

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Purpose of the SBI share loan:
This loan can be used to meet contingencies and needs of a personal nature. The loan will be authorized for subscription to rights or new issue of shares against a pledge of existing shares. However, the loan will not be sanctioned for
(i) for speculative purposes
(ii) intercompany investments or
(iii) acquire a majority stake in the company / companies

SBI loan against equity eligibility
This facility is available to existing individual SBI clients enjoying a satisfactory relationship with the bank and maintaining their DEMAT account with SBI Cap Sec. It is offered in the form of an overdraft or a demand loan. The loan can only be used on behalf of one.

SBI equity loan Maximum and minimum amount
Existing SBI clients can avail loans of up to Rs 20 lakh against shares, however, this loan should not exceed Rs 10 lakh if ​​the purpose is to underwrite IPOs. Minimum loan amount: Rs 50,000.

SBI loan against equity processing fees and interest rate.
There is no processing fee charged by the bank for this loan, while a revision fee of Rs 1000 + applicable GST per year must be paid to the bank. SBI loan against shares should be verified on SBI official website sbi.co.in.

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