Loan Against Securities
(Kotak Stock Ace)
Capitalize on your investments without selling them
Yes. You can avail of limits by pledging the single scrip, if it is part of our approved list of scrips.
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).
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.
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.
Yes. You can pledge shares held with any Depository Participant in NSDL or CDSL, with your respective Depository Participants.
You can pledge your own shares, or those of your blood relatives (parents, spouse, children, and blood siblings only) above 18 years of age.
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.
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.
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.
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.
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.
Only Resident Individuals can apply for the Stock Ace facility. Other entities are specifically not eligible to apply
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.
The initial tenure is for a year. At the end of the year, the client is required to renew the facility with simple documentation.
There is a nominal processing fee which is charged at the rate of 0.5% of your loan amount.
Following documents are needed:
You can approach us in any of the following ways:
No additional security/ collateral need to be provided, apart from the securities against which the loan is granted.