MUMBAI: In an industry first, HDFC BankBSE 0.54 % on Wednesday launched digital Loan against Securities (LAS) allowing customers to avail loans in less than 3 minutes.
The service will also be available to customers with no credit history. The bank, which will offer 10.5 per cent interest rate on the product, will soon expand the offering to other securities such as mutual funds, bonds and insurance policies.
Customers can avail a minimum loan of Rs 1 lakh and maximum loan up to Rs 20 lakh under this facility. Banks normally disburse 50 per cent of the value of pledged shares as loan. The bank has collaborated with NSDL to seamlessly deliver this product.
“The offering empowers the customers to design their own loan against shares,” said Arvind Kapil, Country Head – Unsecured Loans, Home, and Mortgage Loans, HDFC Bank.
“A large part of our motivation is inclusion of tier-2 and tier 3 customers in this digital revolution. We see customers not only from metros but small towns going online to experience this first hand.”
Private sector banks together account for about Rs 5,000-6,000 crore worth loans against securities and HDFC Bank controls 51 per cent of those loans.