HDFC Bank Launches India’s First Digital Loans Against Securities

Posted on:17 Mar 2017 09:58:27
HDFC Bank Launches India’s First Digital Loans Against Securities
17 March 2017 Current Affairs: HDFC Bank in collaboration with National Securities Depository Limited (NSDL) has launched an instant Digital Loan against Securities (LAS) product on March 15, 2017.

 LAS will reduced the time to disburse the overdraft facility in just 3 minutes rather than several days previously. This is a first-of-its-kind initiative in India and probably the first in the world as well.

Key Features of the LAS : Under the facility, customers can pledge shares directly through their demat accounts and give necessary approvals while applying for the loan.

Shares dematerialised by NSDL and executed through HDFC Bank demat account could be used for pledging.

The bank will instantly approves the loan and the money will be credited to their bank accounts. Once shares are pledged, a customer cannot sell them unless the loan against them has been cleared.

The loan amount ranges from Rs 1 to 20 lakh for a period and every year the loan amount will be reevaluated.

The overdraft will be offered at an interest rate of 10.5 percent, same as the non-digital loans.

Initially the facility is restricted to only HDFC Bank demat account holders so customers need to open accounts with the bank to avail the digital service.

Besides, the facility will be available for Demat shares in the beginning which will soon be extended to other securities such as mutual funds, bonds and insurance policies.

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs 2018 June

19 JUNE
NEWS
18 JUNE
NEWS
17 JUNE
NEWS
16 JUNE
NEWS

Current Affairs 2018 May

31 MAY
NEWS
30 MAY
NEWS
29 MAY
NEWS
28 MAY
NEWS

Current Affairs 2018 April

30 APRIL
NEWS
29 APRIL
NEWS
28 APRIL
NEWS
27 APRIL
NEWS