SRINAGAR: HDFC Bank on Friday launched its ‘Design Your Own Loan’ scheme that allows its clients to apply online for Loan against Shares (LAS) through demat accounts.
“The scheme would offer customers convenience to design their own loan at any time of day or night anywhere. It also enables them to optimise the amount they would like to borrow, thus obviating the need to visit a bank branch,” HDFC said in a release issued here.
The scheme, it said, also reduces the time taken for LAS approvals and disbursements from the current industry turnaround time of 4-8 days to just 24 hours. The customers can also set their own limits by choosing the combinations of shares to pledge with the bank, it said. It said the scheme allows customers to pledge from a range of collateral accepted in the industry.
“Other benefits include anytime, anywhere access, interest only on amount utilised, auto renewal of loan facility, no repayment penalty and a dedicated LAS helpdesk. This is an industry first in terms of offering an easy, seamless and quick experience to the customer for obtaining loan against shares,” it said.
The bank said the process of availing the offer takes “only a few minutes” with the customers only required to fill up a form, which is processed and disbursed on priority.
“All HDFC Bank resident individual customers, who have an existing demat account with the bank, can now apply for LAS by logging into their Net Banking account and clicking on the ‘Demat’ tab and following the instructions,” it said.
“After selecting the loan amount and shares, customers need to select the branch, city and state to open the LAS account. On clicking ‘Confirm’, an acknowledgement is obtained, along with an option to download the PDF of the acknowledgement. An SMS is also sent to the customer acknowledging the receipt of application,” it added.
Subsequently, an official from the nearest branch calls on the customer with prefilled documents and obtains the customer’s signatures, it said. The minimum loan amount is Rs 1 lakh and the maximum is Rs 20 lakh, it added.