Why redeem units when the loan is easily available?

Application for Loans against securities to be made online through E-Wealth Account. The loan sanction status is updated within minutes, and the loan amount is disbursed in no time.

Leverage your investment portfolio, held in both demat and non-demat form, to unlock the full potential of your investments while avoiding unscheduled redemptions and sale of investments. Liquidating your portfolio in an unplanned manner will negatively impact the returns due to possible unfavourable market prices and upfront tax liabilities, all of which ends up causing financial losses to investors and thus, impacts Goal Based investments that the investor may be looking forward to. The LAS - Term Loan product introduced by NJ Capital provides a very quick, convenient way of availing finance against securities held in your account, while still retaining ownership and riding the upside of being invested in the stock market.

The EMI based repayment structure also ensures that payments are made in an orderly, planned and affordable manner over the specified period and the liability is continuously brought down.

The features of the product have been given below:

1. Loan amount

Demat: ₹ 25,000 (Twenty-Five Thousand Only) to ₹ 10,000,000 (One Crore Only)

Non Demat: ₹ 25,000 (Twenty-Five Thousand Only) to ₹50,00,000 (Fifty Lakhs Only)

2. Securities acceptable as collateral

• Approved:
  • Equity MF Schemes
  • Debt MF Schemes
  • Hybrid MF Schemes
  • Fund of Funds
  • Balanced Funds

3. Eligibility:

• The applicant must be a resident of India.
• The applicant must be aged above 18 years.
• The applicant must have a bank account and all the KYC documents in place.
• The applicant must pledge securities to secure the loan.

4. Loan Purpose:

• Agriculture
• Business
• Property Acquisition and/or Improvement
• Education
• Medical Expenses
• Holidays/Weddings/Family Occasions
• Personal Effects (Vehicle/Jewellery, etc.)
• Retiring Existing Debt

5. Loan Tenure (Months): 6 to 84 (Months)

6. Interest Rates: The interest rates can range from 12% p.a to 15.5% p.a, depending on the Loan Tenure. Interest shall be calculated on reducing balance.

7.EMI Due Date:

1st to 15th of the month (25th of the same month)

16th to last date of month (10th of the following month)

8. Margin (%) Required** (through the tenure of loan):

The Borrower shall be required to maintain the specified margin at all times and the aggregate Security Value –i.e., total value of all the Securities offered by the Borrower shall be netted off for such Margin and the balance will be considered for the purpose of actual disbursal. This margin shall be maintainable every single day and any shortfall shall be fulfilled immediately either by way of pledging additional securities or reduction of the loan (by way of repayment).

The indicative margins (as mandated by RBI and/or internal company policy) required to be maintained are given herein below -

Approved Equity MF's between 50% - 75% of the NAV

Approved Debt MF's about 20% of the NAV

Please refer to the specific scrip / mutual funds and the applicable margins LTV Master. The above margin rates have been mentioned to provide a general idea of the margin requirements.

Such margins can change from time to time depending on the market conditions and/or internal policy of the company.

9. Notice Period to fulfil Margin Calls (i.e., where Actual Margin available falls below the Required Margin):

Three (3) Business Days. The margin can be restored either by repaying part of the loan or by offering more securities as collateral.

In case margin shortfall is covered by repaying some part of the loan, no prepayment charges would be applied on such amount prepaid.

10. Date of Disposal of Securities (in case of non-receipt of EMIs):

Where the EMI Due Date falls on the 10th of a month and the due amount remains unpaid, the date of disposal of securities will be the 25th of the same month. In case the 25th is not a Business Day, then securities will be invoked immediately on the following Business Day.

Where the EMI Due Date falls on the 25th of a month and the due amount remains unpaid till then the date of invocation of securities will be the 10th of the following month. In case if the 10th is not a Business Day, then securities will be disposed immediately on the following Business Day.

11. Disposal of Securities (in case of occurrence of Event of Default / Potential Event of Default as defined in the Agreement other than non-receipt of Instalment):

Within a period of Seven (7) Business Days from the date of service of notice of occurrence of such Event of Default / Potential Event of Default by NJ Capital Private Limited, if such Event of

Default is not cured or within such additional time which may be extended at the sole discretion of the NJC.

12. Processing Fees (%):
0.5% of the loan amount subject to a maximum of ₹ 20,000/- (exclusive of applicable taxes). The same shall be deducted from the disbursed loan amount.

13. Documentation Charges:

First Time - ₹ 500/- (Five hundred only) (exclusive of applicable taxes)

Subsequent Loans - ₹ 200/- (Two hundred only) (exclusive of applicable taxes)

The same shall be deducted from the disbursed loan amount.

14. Prepayment Charges:

Prepayment Charges (Excluding applicable taxes)

• Before 12 EMI’s - 4%
• Beyond 12 EMI’s and upto 24 EMI’s- 2%
• Beyond 24 EMI’s and upto 36 EMI’s- 1%
• Beyond 36 EMI’s-Nil

15. Additional Interest - on Delayed Payment
1.5% per month or part thereof, on the Outstanding’s, for the entire period of delay up to the date of realization. (Exclusive of applicable taxes)

16. Dishonour/Bounce Charges
₹ 500/- (Five Hundred Only) (Exclusive of applicable taxes), for every instance of dishonor.