You can avail Loan Against Securities (LAS) from other NBFCs by opening an account with them and pledging your securities through Zerodha's offline process.
Zerodha Capital offers loans against securities held in your demat account through a simple online process. Visit zerodhacapital.com to learn more about Zerodha's loan services.
Steps to avail loan from other NBFCs
To avail loan against securities from a different NBFC offline, follow these steps:
-
Open a loan against securities account in one of the financial institutions. In this context, the financial entity will be the
pledgee,
and the person applying for the loan will be the
pledgor.
- Once the account has been set up with the pledgee, download, print, and complete the pledge request form (PDF). Ensure you enter the demat account details of both the pledgor and pledgee (only CDSL accounts are accepted), the ISIN(s) with their corresponding quantities, the expiry date, the agreement number, and provide the necessary signatures.
- The pledge request form (PDF) allows for up to 8 ISINs to be entered. If the request involves more than 8 ISINs, please use the attached pledge annexure form and submit it together with the pledge request form.
- You can find your DP ID on Console , and the International Securities Identification Number (ISIN) of securities can be found on the NSE or BSE website or on the holdings report on Console. The financial institution provides the pledgee's name, DP ID, Client ID, expiry date, and agreement number.
- Send the completed documents to the following address
Zerodha Customer Support Centre,
192A 4th Floor,
Kalyani Vista, 3rd Main Road,
JP Nagar 4th Phase,
Bengaluru, 560076
Alternatively, you can eSign the forms and send them to Zerodha by creating a ticket. Non-individual account holders need to follow the offline process.
Once Zerodha receives the form, the pledge will be processed within 24-48 hours, and an acknowledgement will be sent. The pledged securities will be moved to the pledgee’s demat account, and the pledgee will process the loan.
Unpledging of securities
Securities can be unpledged by requesting the financial institution (pledgee). Once the financial entity (pledgee) confirms that there are no dues, they will un-pledge the securities, and the same will be converted from the pledge balance to a free balance.
OR
If the financial entities (pledgee) confirms that there are no dues and they request to contact the DP to unpledge the shares, Download the unpledge request form (PDF), fill it up, eSign the filled unpledge request form and submit it by creating a ticket. Alternatively, you can fill the unpledge request form (PDF) and submit it offline by couriering it to the address mentioned below:
Zerodha Customer Support Centre,
192A 4th Floor,
Kalyani Vista, 3rd Main Road,
JP Nagar 4th Phase,
Bengaluru, 560076
Things to keep in mind
- Once the holdings are pledged, they will not be visible on Kite, and they cannot be sold until they are unpledged.
- The e-signed forms must be submitted within 30 days from the date of eSigning. The charges for pledging are ₹32 + GST per ISIN. The charges for unpledging are ₹32 per ISIN. The charge for pledge invocation is ₹20 + GST per ISIN.
- E-signing the pledge/unpledge request form is not allowed for joint and non-individual account holders.
- If the unpledge request form is processed from Zerodha's end and the shares are unpledged, but the dues with the financial entity are not cleared, the shares will remain pledged, and the pledgee must be contacted.
- In the case of corporate or HUF accounts (non-individual accounts), affixing a seal when filling out the forms is mandatory.