Frequently Asked Questions
What is Loan Against Stocks (LAS)?
LAS is a secured loan that lets you borrow money by pledging your stocks - not selling them, and continuing to stay invested in the market.
What happens to my stocks after taking a loan?
When you take a loan, your stock units are used as collateral by the lender. You still own them and benefit from any growth or income. However, you can't redeem or transfer them until you repay the loan. If the value of your funds drops significantly, you might need to pay back part of the loan.
What types of funds are eligible for collateral?
Typically, we support most of the stocks in below categories
- Large cap stock
- Mid cap stock
- ETFs
What does pledging my stocks mean?
Pledging marks your stocks as collateral for the loan. You continue to remain the owner of your investments.
Is LAS a pre-approved loan?
Yes, your loan amount is pre-approved based on your stock portfolio. Only pre-approved users can complete the journey on the mobile application
How much loan can I get using my stocks?
You can get up to 50% of portfolio value against the eligible stocks as a loan. The final loan amount may change with market movement; portfolio held and the credit policy.
How is my loan amount calculated?
For eligible users as per our credit policy; the loan amount is calculated by multiplying the value of the eligible stocks and the applicable loan-to-value ratio of that stock as per collateral policy.
Can I foreclose the loan before the loan tenure ends?
Yes. You can repay the loan partially or fully before the tenure ends, as per the terms.
Do my investments continue to grow after pledging?
Yes. Your pledged stocks continue to earn the market returns (profit/loss), dividends, bonus, split or any other market actions that the stock undergoes.
Is my portfolio safe when I pledge my stocks?
Yes. Your stocks are pledged through CDSL, official depository, ensuring a high level of security.
How is interest calculated on my loan?
Interest is calculated daily on the outstanding principal amount. You pay only for the exact number of days the funds are used, and the total interest is collected monthly as per your due date.
What happens if the value of my pledged stocks decreases?
Our system have built-in buffer to not trigger shortfall due to normal market fluctuations. Minor price movements will not affect your loan. If the portfolio value drops beyond this buffer, we will notify you and give you time to make the shortfall payment.
What is shortfall?
A shortfall occurs when the value of your pledged stock falls below the required collateral value or the amount outstanding. This means there is a gap between the value of the pledged assets and the withdrawn amount, potentially leading to a need for additional collateral or partial repayment.
What happens to my pledged stocks when I repay my loan partially or fully?
Your pledged stocks will be eligible for unpledged as you repay - partially for part payments and fully when you close the loan. You can reach out to our customer support with your request to unpledge
Do I need to withdraw the full loan amount?
Yes. The full loan amount selected on the App is disbursed upfront.
Can I make partial repayments or close my loan anytime?
Yes. You can make partial repayments or fully close your loan anytime. We do not charge any prepayment or foreclosure fee
How can I contact support for my loan?
You can reach out our customer anytime to get help with your loan by writing to us at support@angelonecredit.in.
What is the Rate of Interest for my loan against stocks?
The rate of interest will vary between 9% - 15% depending on customer profile, their portfolio holdings, etc.