Mirae Asset Financial Services Launches Digital Loan Against Shares for CDSL Demat Holders
Mirae Asset Financial Services (India) Pvt. Ltd., the NBFC arm of the Mirae Asset Financial Group, today announced the launch of digital pledging for CDSL demat accounts. Customers with CDSL demat account can now apply for a Loan Against Shares (LAS) completely online through the Mirae Asset Financial Services website or mobile app.
The company introduced Digital Loan Against Shares in 2022, making it easy for investors with NSDL demat accounts to get a loan online.
Until now, customers with CDSL demat accounts looking to avail a Loan Against Shares often had to go through a manual, paper-intensive process. The pledge request involved paperwork, physical verification and coordination across multiple touchpoints, including the lender, Depository Participant (DP) and depository. This could make the overall process cumbersome and, in many cases, take 7–10 days before the pledge was completed and the loan could be created.
Customers can now apply online, select the shares they wish to pledge and authorise the request digitally, without visiting a branch or submitting physical paperwork. Once the pledge is approved by their Depository Participant (DP), they can proceed with creating their loan account on the same day. This launch is significant because CDSL is India's largest depository by the number of demat accounts. Today, CDSL has over 18.5 crore demat accounts, representing more than 80% of India's demat market.
Simple Digital Application Process
As part of the loan application, customers enter their 16-digit BOID (Beneficiary Owner Identification Number) to securely fetch the shares available in their CDSL demat account.
They then select the shares they wish to pledge and the number of shares. After verifying the request using an OTP, the pledge request is sent to their Depository Participant (DP) for approval.
Once the DP approves the request, the shares are pledged digitally and the customer can proceed with creating the loan account. The entire process is completed online, with no physical paperwork required.
How the Loan Works
Customers can avail loans ranging from ?25,000 to ?1 crore against approved shares.
The loan amount depends on the category of shares being pledged. Approved shares are classified into four categories based on factors such as market capitalization and price volatility. Based on the applicable category, the loan-to-value (LTV) ratio is 45%, 40%, 35% or 30%.
Interest is charged at 10.25% per annum and is calculated only on the amount actually utilized, not on the total sanctioned loan limit.
Customers can prepay or foreclose their loan at any time without any charges. They can also increase their eligible loan amount by pledging additional shares or reduce it by partially releasing pledged shares. The complete loan journey from application to loan servicing is available online.
Quotes
Krishna Kanhaiya, CEO, Mirae Asset Financial Services, said:
"We thank CDSL for enabling this digital pledging facility. This launch allows us to serve a much larger community of retail investors by giving them a smarter way to access funds without selling their investments. Many investors need short-term liquidity but don't want to disrupt their long-term wealth creation journey. Our goal is to make borrowing as simple, transparent, fast, hassle-free and completely digital. The encouraging response to our Loan Against Mutual Funds reinforces our belief that customers value convenience and trust, and we are confident this solution will deliver the same experience."
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