Margin Funding

Margin Funding

Prabhudas Lilladher Financial Services Pvt. Ltd. is an RBI approved NBFC arm of PL group. It offers finance against shares & securities to meet fund requirements of various category of borrowers that includes Retail & HNI, HNIs, HUFs and Corporate entities. It also provides finance for investment in primary market issues and Mutual Fund Schemes.

Service Offerings

Loan against Shares: We provide loans against marketable shares to individual and corporate clients where they don't have to sell their investments to encash their value. Moreover, the owner enjoys all the benefits such as dividends, bonuses, rights, etc. Loans are granted only against pre-approved list of securities.

Line of Credit against Securities: We offer a line of credit against marketable shares and/or mutual fund units, where borrowers can avail the disbursement and repay it as per their convenience. This is an overdraft facility granted against approved shares owned either by the borrower or third party pledgers. Finance against shares enables instant liquidity against shares without selling them.

Mutual Fund Financing: Large investments in debt/equity mutual fund schemes can be made by paying only the Margin Amount with PLF financing the balance application amount. With easier and faster processing, existing funds can be leveraged and investment funds can be enhanced to capitalize on new investment oppurtunities.

IPO Financing: IPO loans can be availed by investing only the Margin Amount with PLF financing the balance application amount at agreed rates of interest and conditions. The exclusive IPO financing scheme provides a single window clearance for application, banking and follow-up.

Promoters Funding: Fund requirements of promoters of well-managed corporates for various needs like financing for business growth, creeping acquisition and take-over financing can be availed through Promoters Funding.

General Interest Rates on Loans: The interest rates on loans depend on various risk perceptions like credit worthiness of the borrower, security offered, security margins available, usage of funds by the borrowers, cost of raising funds and prevailing market conditions. Credit risk is generally perceived to be low for loans against a basket of pre-approved securities with defined margins, while it is considered high for loans against security of either one or two scripts.

Key Features

  • RBI registered non-deposit taking NBFC
  • 500% growth in loan asset size in the last 3 years
  • Loan book is adequately secured by equity shares and other securities of 2 – 2.5 times
  • 3 fold increase in number of clients and income in the last 3 years
  • Rating of A2 by ICRA
  • Comfortable asset quality with Nil non-performing assets
  • On-line loan account position and security holdings viewing facility to clients
  • Back office work supported by an integrated IT system
  • Operations managed within well defined risk management guidelines

For more information on PL's Margin Funding services, contact: