Margin / Share Loan
Margin/Share Loan is provided to firms, companies, and individuals involved in trading shares or making portfolio investments. The loan supports the acquisition of listed shares, based on the type of shares and the borrower’s financial capacity.
Eligibility Criteria
- Firms/companies involved in trading of shares or making portfolio investments, or allowed by their charter documents (MOA/AOA) to trade shares and invest.
- Individuals holding ordinary or promoter shares of listed companies.
- Individuals with regular cash flow and a valid PAN card.
Loan Limit
- Ordinary Shares: Loan up to 70% of the weighted average market price of 180 days or last traded price, whichever is lower.
- Promoter Shares: Loan up to 50% of the weighted average market price of 180 days of ordinary shares or last traded price of promoter shares, whichever is lower.
Documents Required
- Loan application form duly filled by applicant and co-signed by parents/guarantor.
- Copy of citizenship and passport-size photograph of applicant/authorized person and guarantor.
- Copy of PAN card of applicant if loan amount is NPR 5,000,000 or above.
- Copy of Registration Certificate and PAN of company/firm.
- Copy of Memorandum of Association (MOA) & Articles of Association (AOA) in case of company.
- Partnership deed in case of partnership firm.
- Board resolution/minutes in case of company.
- Audited financial statements of last 2 years along with latest tax clearance letter (firm/company).
- At least 3 years projected financial statements.
- DEMAT statement of shares.
- Details of the security offered as collateral.
- Income source documents (salary certificate, rent agreement, remittance receipts, etc.).