NBFCs – Lending against Shares

NBFCs lending against collateral of shares are required to :

i. Maintain an Loan to Value (LTV) ratio of 50%  and 
ii. Accept only Group 1 securities as collateral for loans of value more than Rs.5 lakh, subject to review by the Bank.

All NBFCs with asset size of Rs.100 crore and above shall report on-line to stock exchanges, information on the shares pledged in their favour, by borrowers for availing loans.

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