Loan Against Security FAQs

Loan Against Security FAQs

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Loans Against Security Faqs

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How will death claim get processed in-case of the death of borrower/co-borrower in LAS account?

Surviving borrower/co-borrower of LAS account need to submit request for security released through register Email ID or at branch by submitting intimation letter of demise along with death certificate.

In case of nominee /legal heir of deceased can submit request for security released through branch by submitting intimation letter of demise along with death certificate & identity proof of nominee /legal heir.

Further release of security will be processed basis account utilization status.

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I have a single scrip in my portfolio; can I get limits against only one scrip?

Yes. You can avail of limits by pledging the single scrip, if it is part of our approved list of scrips.

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Is my overdraft limit fixed?

Your portfolio is valued periodically, and your overdraft limit varies, depending on the market rate of the shares you have pledged. You may at any time choose to increase your overdraft limit by pledging more shares, or decrease it by withdrawing them (within the permissible limits).

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How frequently do you revalue my portfolio?

We revalue your portfolio on a weekly basis. Additionally, in the event of a sharp fall in the market prices, we conduct an interim revaluation.

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Can the bank inform me about my latest limit by e-mail / SMS alerts?

The Bank has an e-mail alert and SMS alert facility whereby we intimate the latest limit as and when it changes due to revaluation of prices or lodgment / withdrawal of shares.

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I do not have a Demat Account with Kotak Bank. Can I still avail of your facility?

Yes. You can pledge shares held with any Depository Participant in NSDL or CDSL, with your respective Depository Participants.

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Whose shares can I pledge?

You can pledge your own shares, or those of your blood relatives (parents, spouse, children, and blood siblings only) above 18 years of age.

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In whose name would the shares be held?

Your shares remain in your own name while you reap the benefits of your portfolio. This means, you can continue to enjoy all your shareholder benefits such as rights, dividends and bonuses, while enjoying the additional liquidity.

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How do I receive the overdraft amount?

We require you to open a Current Account in your name into which we will create an overdraft limit. Your overdraft limit will depend on the quantity and value of the securities you have pledged with us.

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What are the other benefits that I can get from my Overdraft Account?

Your Stock Ace Account comes equipped with all the benefits associated with Kotak Mahindra Bank's current account such as Phone Banking, Net Banking, Bill Pay, Debit Card, ATM facilities, etc.

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How much do I pay?

Interest rates at Kotak Bank are the most competitive. You only pay interest on the amount of the overdraft that you use, and for the time you use it. Interest is debited to your account at the end of each month.

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How do I pay the interest accumulating in my account every month?

With reference to RBI guidelines vide BOD.NO.BP.BC.10/21.04.048/2004, please note that interest debited in your overdraft account has to be serviced at monthly intervals or at such intervals as may be applicable from time to time, by way of credits into your overdraft account.

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Who can apply for the Stock Ace facility?

Only Resident Individuals can apply for the Stock Ace facility. Other entities are specifically not eligible to apply

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What are the minimum and maximum loan amounts?

You are given a drawing power up to 50% of the value of the shares. Minimum loan amount is Rs. 5 lakhs. Maximum loan amount is Rs. 20 lakhs. The loan is applicable for a year and renewable at the end of each year.

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What are the loan tenure options?

The initial tenure is for a year. At the end of the year, the client is required to renew the facility with simple documentation.

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What are the charges on my Stock Ace Account, apart from the Interest on the overdraft?

There is a nominal processing fee which is charged at the rate of 0.5% of your loan amount.

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What are the documents that I need to submit?

Following documents are needed:

Complete KYC documentation, along with completed Account Opening Form
Completed Agreement and Loan Facility documentation
Please refer to your nearest branch for the complete list of documentation

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How do I apply for the Kotak Stock Ace Account?

You can approach us in any of the following ways:

Call us at our Customer Contact Centre
Write to us at [email protected]
You can just walk into your nearest branch and ask about the facility.

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What security/ collateral do I have to provide?

No additional security/ collateral need to be provided, apart from the securities against which the loan is granted.

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How do I get to know my Credit Limits?

You can call our Customer Contact Centre to know the status of your account, details of the securities pledged, amount obtained against different securities, details of shortfall (if any), etc.

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