Loan against Securities
As name suggests Loan against Securities means availing loan by pledging shares. Customer cannot sell pledged shares till the loan is running.
An overdraft facility is advanced to customers when they pledge their securities. The value of the overdraft limit that is advanced to customers is determined on the basis of the securities that are pledged.
For smooth transactions, a current account is opened in the name of the customer. The rate of interest is calculated only on the amount withdrawn by you and only for the period of utilization.