Loans against Collateral Securities

29/12/2020 1 By indiafreenotes

Loans Against Securities is available in the form of an overdraft facility which is pledged against financial securities like shares, units and bonds. Loan Against Shares/Bonds/Mutual Funds is basically a loan wherein you pledge the securities you have invested in as collateral against the loan amount. A Loan Against Securities is the best way to make your investments work harder and smarter for you.


When taking out a loan against securities, you are essentially borrowing from yourself. Having that said, still, need certain eligibility criteria to be met before the loan is sanctioned.

Take a look at some of the basic criteria.

  • You need to be an Indian resident
  • You can only qualify if you have attained 21 years of age
  • You must be either self-employed or a salaried employee with a regular income source

Required Documents

You need following documents to avail a loan against securities from Fullerton India.

  • Application form
  • All KYC documents including PAN Card, Identity Proof, Address Proof
  • Passport-sized photographs
  • Original Insurance Policy or Financial Security that you intend to pledge as collateral
  • Deed of Assignment

For Self-Employed Individuals and non-professionals:

  • Proof of business continuity by providing any one of these documents – Shop and Establishment Certificate/Tax registrations-VAT/Service tax/GST registrations
  • Proof of firm constitution via submission or either of these documents – MOA/AOA/Partnership Deed/GST Registration Certificate/Form 32 for knowing the latest directors
  • Audited financials for the last 3 years
  • Tax Audit Report for the last 3 years – Form 3CB + 3CD in case of proprietorship and partnerships and Form 3CA + 3CD in case of Companies
  • Latest VAT/GST/Service Tax returns for the current financial year
  • The breakup of all secured and unsecured loans
  • As on date List of Directors and Shareholding Pattern
  • Sanction letters for any existing loans with corresponding statements reflecting EMIs for the last year
  • Business Account Statements for the last 1 year

For Salaried Individuals:

  • Last 3 months salary slips
  • Form 16
  • Proof of Employment in case your present employer does not match with your Form 16 information
  • Last 6 months bank statements that reflect any existing EMI repayment and salary