1.What is Insta LAS (Loan Against Securities)?
Insta LAS offered in association with ICICI Bank, is a hassle-free and completely paperless offering to select ICICIdirect customers having equity shares as per approved list in the demat form with ICICI Bank. Customers can log-in to their ICICIdirect account and avail this offer in few simple steps within minutes.
Some of the parameters that ICICI Bank may evaluate while sanctioning this facility are:
KYC compliant
Individual Demat account holding
Minimum age for applicants: 21 years
Maximum age at maturity: 68 years
Approved securities and credit profile etc.
2. LAS commercial details
a) ROI - 9.90% p.a.
b) Processing fee - 500+GST
c) Renewal fee - ₹2500 + GST
d) Loan to Value (LTV) - 50% (of market value of pledged security as per approved list)
e) Loan value that can be availed - Max. - ₹20 lacs, Min. - ₹25K as per market value of security
f) Pledge creation and closure charges - the pledge creation and closure charges are levied by respective DPs as per their pricing schedule and is to be borne by the client
3. What kind of loan facility is it?
It's an Overdraft facility given to the customers by ICICI Bank where customers only need to pay the interest for the number of days the limit is utilized. In case no limit is utilized then no interest is to be serviced. Principal can be repaid anytime as per the liquidity position of the customer.
4. In what name the Insta LAS a/c will be opened and where?
a) Insta LAS a/c name will be as per demat holding pattern and in the same customer Id/ branch where the linked savings a/c is present
b) Facility is only available to Individual demat account holders having savings account with ICICI Bank
c) Joint account holders cannot avail Insta LAS
5. Will my interest get auto debited in the month end or do I have to pay manually?
Interest is to be served monthly basis through cash, cheque, fund transfer from other account or through auto debit facility.
Interest is to be deposited in the OD account at the end of each month once you start utilizing the Loan Amount
Note*: You need to fill up an auto debit mandate form if you wish to go for the auto debit option otherwise you need to pay the interest manually
Interest rate will depend on the rate structure applicable at the time of application login
6. What is the loan tenure?
The facility is provided for one year and gets renewed, basis satisfactory performance of the account, after one year.
It would be renewed automatically. In case customer does not wish to renew the facility, he/she needs to place a request for closure of the account with the nearest ICICI Bank branch before renewal.
7. What other benefits and deliverables am I eligible under this facility?
Anywhere banking facility with at par cheque book, ATM card and Net banking facility access.
8. What is the time period for ATM card, Cheque book to be delivered? How immediately can I withdraw /use fund as the instant limit gets credited?
Cheque book \ ATM card will be delivered within 7-10 working days
Since your Insta LAS account is linked to your saving account, you can transfer funds using internet banking and start utilizing the funds immediately
9. What are the steps to complete Insta LAS transaction?
Log-in to www.icicidirect.com > Click on Equity Section > Insta Loan against Securities > Check Eligibility > Proceed >
Redirected to ICICI Internet banking Demat, Insta Loan Against Securities Section > Click on Apply now > Select scrip and enter quantity > Calculate Loan amount > select appropriate options to proceed further > Enter OTP > Read and agree to T&C
Fill details on NSDL platform as directed > Enter OTP received on registered mobile no with DP > Submit and confirm pledge > VOILA... Congratulations… limit is set.
Note*: Please use only Laptop or Desktop and use Google Chrome for Insta LAS Process. Delete Cookies from history before logging in to ICICIdirect site.
10. Maximum number of scrips that can be pledged?
Max of 10 scrips only can be pledged at one time
11. Can I increase my limit after taking the initial disbursement through INSTA LAS? If yes, how to pledge more shares
Yes, you can increase the limit subsequently and pledge more shares as per your fund requirement up to a maximum amount of ₹20 lacs only.
Process: Login to ICICI Internet banking > Click on Investment & Insurance > Demat > Loan Against Securities > You can see your existing account and existing limit > Click on increase limit > Select scrip and enter quantity > select appropriate options to proceed further > Enter OTP > Read and agree to T&C
Fill details on NSDL platform as directed > Enter OTP received on registered mobile no with DP > Submit and confirm pledge > VOILA... Congratulations.
12. If I want to withdraw a particular share (close pledge), how will that be done?
One has to fill up a pledge closure form and submit at ICICI Bank Demat desk. Shares will be released if there is no outstanding against those shares. In case shares are not released please contact ICICI Bank LAS team.
13. If I want to close my Insta LAS Account, how will that be done?
You need to fill up an account closure form and submit at ICICI Bank branch.
14. Can I sell my pledged shares?
Yes, you can sell your shares even if they are pledged. The outstanding loan amount will be adjusted from the proceeds of sale of your pledge shares and the remaining balance will be credited to your LAS account.
Process: You need to fill up an “online selling agreement” form by visiting the nearest ICICI Bank branch with demat services. Once the form is submitted, you will receive user id and password for this facility at your registered address. You can then login and can sell your pledged shares online.
15. How often are the shares revalued?
The routine revaluation takes place every Friday. However, a revaluation can also take place in the interim period if there is a significant fluctuation in the market.
16. If I am not eligible for INSTA LAS, then what should I do?
You can avail of the LAS facility in an offline mode by filling up the loan application form which is subject to credit assessment by the bank.
17. Will more shares be included in the approved script list?
The list of approved securities is revised from time to time and uploaded on the website www.icicidirect.com
18. I have shares that are in the approved list, but they are in physical form. Can I get a loan against them?
Yes, but you would have to first convert them into the demat form. You may get your shares dematerialized through a depository account with ICICI Bank. Insta Loan can be given only against shares available in demat form.
19. Am I required to have a demat account with ICICI Bank?
Yes, your demat account should be with ICICI Bank only to avail Insta LAS facility.
20. How do I repay the loan?
You can repay the loan online or by cash, cheque or demand draft
Modes to deposit amount: Cheque, Online, Cash
Stamp and notary charges are paid by the customer in actual
21. How is interest calculated
Interest is calculated on a daily outstanding balance basis, and debited from Insta LAS account on the last working day of the month
Interest is charged on amount used and for the period it is used
No pre-payment charges.
22. If I have paid interest and also principal amount, then can I release my pledged shares from the account?
Yes, you can release your pledged shares. You need to fill up a pledge release form and submit it at nearest ICICI Bank branch demat desk
23. Will I be receiving any letter, email or SMS from ICICI Bank in regards to my LAS account?
Yes, after disbursement below are the communication that will be sent to you by ICICI Bank
Welcome letter in Physical form
Weekly Interim Valuation Report (IVR) on Mail
SMS for limit modification
Renewal/Non-renewal letter at the time of renewal
24. If I am not using ICICI Bank Internet Banking, then how to proceed further for Insta LAS?
When you apply for Insta LAS through ICICIdirect, you will be automatically redirected to the Internet banking page without asking to enter User ID and Password. But this will happen only if you have an “Active Internet Banking” account
If you, do not have an active Internet Banking ID or has not used your Internet Banking for last 6 months, you will not be able to proceed
Resolution: Request you to call customer care and activate your ID. After 24 hours the Internet Banking ID will be activated
Please Note*: After activating your ICICI Bank Internet Banking you may need to link your demat account by updating your demat number. After 24 hours you can restart the process to apply Insta LAS on ICICIdirect.
25. If mobile number is not updated in demat or is incorrect then what is the procedure to update?
To check the mobile no updated in demat account: Login to ICICI Internet banking > Investment and insurance > Demat > View personal details > View last 4 digits to verify mobile number
To update the Mobile no in demat account: Login to ICICIdirect account and update your mobile number in General Profile, after 24hrs your number will get update in demat as well
26. Where will the dividend of pledged share will get credited? Will I get it?
You will get dividend for the Pledged shares as per normal process in your linked ICICI Bank account
27. If company has declared bonus shares how can I avail and do I need to withdraw the shares?
Corporate actions are handled as per the example given below.
E.g.: If you have 20 shares of XYZ company and all are pledge. If company declares bonus in suppose 1:1 ratio, then the additional shares received through bonus will also get pledged in your PMR (Pledge Master Report)
28. In reference with the above question what happens when a company declares for rights issue?
For right issue as you have to apply fresh shares so that will not come in corporate action.
29. Is there any time duration in which I can apply for Insta LAS?
Yes, there is a time window to which you can apply i.e. from Monday to Friday between 8 a.m. to 8 p.m.
*The facility shall not be available on public holidays and bank holidays for Mumbai, Maharashtra Region, as declared by the Bank on its website.
30. If I wish to pledge only one scrip from my eligible list will I be allowed to?
If the scrip comes into single category, then you can pledge one single scrip and can complete Insta LAS process but if, the scrip comes into multiple category than you need to select another scrip which can be from single or multiple category.
E.g.: If suppose you have a scrip of XYZ company that comes into multiple category which you wish to pledge then you need to select 75% shares of that scrips and select remaining 25% from other the scrips to complete the successful Insta LAS procedure.
Please note, loan against securities related service is not Exchange traded product and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.