Just like any other asset, an investor can use his idle securities in his/her demat account as collateral to get a bank loan. The investor can pledge only those securities that are approved as per the terms and conditions of the agreement entered with the bank or financial entity.
PROCESS TO GET BANK LOAN AGAINST SECURITIES (LAS): 1. Fill out the PRF (Pledge Request Form): - Print out Jainam's PRF form and fill it out. In this context, the financial entity will be the pledgee, and the person applying for the loan will be the pledgor.
BANK = PLEDGEE
INVESTOR = PLEDGOR - Ensure to enter the pledgee's DP ID and client ID details, ISIN with quantity, expiry date, agreement number, and signature.
- International Securities Identification Number (ISIN) of securities can be found on the NSE or BSE website or on the Global report of JPlus.
- The pledgee’s (bank) name, DP ID, client ID, expiry date, and the agreement number of the pledgee are provided by the financial institution.
- Up to 4 ISIN can be filled in the pledge request form. If the request is for more than 4 ISINs, please use the attached pledge annexure form and submit it along with the pledge request form.
- Also check our sample PRF form here.
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