HDFC Bank has launched ‘Design Your Own Loan’ scheme wherein customers can apply for loan against shares (LAS) online using their demat account. They can also set their own limits by choosing the combinations of shares to pledge with the bank.
“This gives customers the 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 Bank said. “It also drastically cuts the time taken for LAS approvals and disbursements from the current industry turnaround time of 4-8 days to just 24 hours,” it said.
‘Design your own Loan’ allows customers to pledge from a range of collateral accepted in the industry. Other benefits include any time, anywhere access, interest only on amount utilised, auto renewal of loan facility, no repayment penalty and a dedicated LAS helpdesk.
The entire process takes only a few minutes, needs no forms to be filled and is processed and disbursed on a priority basis, the bank said. “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,” the bank 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.
An official from the nearest branch calls on the customer with pre-filled documents and obtains the customer’s signatures. The minimum loan amount is Rs 1 lakh and the maximum is Rs 20 lacs. “Design your own Loan is in line with the bank’s Go Digital ‘Bank Aapki Muththi Mein’ theme. It offers both convenience and customisation,” said Arvind Kapil, senior executive vice president & business head- unsecured loans, home & mortgage loans, HDFC Bank.
“The use of digital platforms for loan against shares is also beneficial for small businesses in smaller towns and cities across India since it offers quick access to liquidity within a short span of time,” he said.