Geojit to offer loans against shares digitally; first to provide such facility

Once the loan application is digitally signed and approved, the amount will be instantly credited to the bank account of the client and interest will be charged only for the amount utilised, he said.

George added that the platform provides maximum funding with flexible repayment options with Geojit Credits offering attractive rates of interest for loans availed under selected schemes.

The LAS market is estimated to be around Rs 55,300 crore as of October 2021 and is growing at 23-25 percent per annum, George said, but noted that cumbersome paperwork often delays the LAS scheme with clients failing to get loans on time.

However, with the launch of the LAS digital platform, Geojit will make the entire LAS cycle from processing to disbursal a fully digital experience and shrink the lead time to a few minutes from a number of days now, he said.

Clients who want to apply for a loan by pledging their shares on the LAS digital platform need to have free holdings of eligible shares in their demat accounts. They are also required to have satisfactory CIBIL scores. Those who have demat account with NSDL, irrespective of who their brokers are, can also avail of LAS through Geojit Credits' online platform, he said.

"We are the first company capable of disbursing LAS digitally to any demat account holder registered with the NSDL. That means non-Geojit clients can also avail of this facility which offers convenience and faster access to funds," George said.

He added that the platform is developed by NSDL and Geojit Technologies, the technology division of Geojit Group, which has been in offering brokerage services for the past 35 years.