NIC ASIA offers share loan scheme at 10.5% interest; up to 70% financing

NIC ASIA Bank has come up with an attractive share loan scheme targeting investors in the stock market at just 10.5 percent interest rate.

“We provide loan against shares of listed companies up to 70 percent against shares on the basis of 180 days of weighted average price or the prevailing price, whichever is lower,” Bhumika Thapa of NIC ASIA . “It only takes three to five days to process the loan.”

She further informed that loan will be provided up to 70 percent against the shares of blue-chip companies and up to 60 percent for the rest, which also includes BFIs under classes ‘B’ and ‘C’.

The bank offers loan for the scrip of five class ‘B’ BFIs, namely: Clean Energy Development Bank, Ace Development Bank, Prabhu Bikas Bank, Kailas Bikas Bank and Business Universal Development Bank.

The bank also offers marginal lending to three BFIs under class ‘C’: ILFC Finance Limited, Mahalaxmi Finance Company Limited and ICFC Finance Limited.

The loan administration fee is 1% of loan amount.

Apart from this, the bank does not take any documentation or other hidden charges.

Another salient factor of the scheme is that you just have to pay the interest for the amount of the loan you spend, and not for the entire loan amount.

You also don’t need any other collateral for loan against shares. - SSN