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1800-270-7000

Loan Against Securities

Aditya Birla Finance Limited

Promoter funding

Leverage your securities for easy financial solutions

  • Register yourself
  • Provide basic documentation
  • Get loan disbursal in no time
Apply

About the Promoter funding

After building your company to a force to reckon with, you as the promoter of the business, will always want to expand by way of starting new operations, entering new markets and introducing new products. To do this, you may require additional funds. In such a case, Promoter Funding against your shareholding is an excellent way to raise funds immediately.

Why Promoter Funding ?

Aditya Birla Finance offers you Promoter Funding as a deft solution to raise funds quickly. Whatever the needs of your business, whether scaling up operations or starting a new ancillary company, it is one of the most reliable business funding options against the shares you own. Thus, it helps you gain the financial wherewithal you require without disrupting your long-term investments.

Your investments in gold and property can be kept out of the ambit of debt when your shares can generate the requisite capital for you. This business financing opportunity against shares generates an instant line of credit. However, the amount of the loan is calculated basis the quality of the stocks or shares you own.

Is Promoter Funding for you ?

Promoter Funding is increasingly being used by promoters to grow their business or to increase their stake in the company, as also to convert outstanding securities into equity shares. Promoters may even buy out other investors in the company using the capital raised from promoters’ shareholding.

Promoters who hold adequate numbers of eligible securities (as stipulated by the lending institution) may find it easier to obtain this loan. There is increased transparency in the process of extending this line of credit, with SEBI regulations making it mandatory for promoters to disclose the value of their pledged shares.

Features of IPO Financing

  • Collateral: Owned shares (from approved list of shares) held by the promoters and holding companies in the promoter group.
  • Tenure: Up to 1 year
  • Minimum Loan Amount: Rs 25 lakh.
  • Loan Margin: 50% and above.
  • Purposes and Intents: This business funding option may be utilised for a new project, for diversification of business into other areas, increasing personal shareholding, or other business purposes to be disclosed.
  • Benefits: Quick turnaround time, TAT-driven processes, utmost confidentiality of transaction.

Next steps…

  • If you own physical shares, you must dematerialise them before you proceed with the Loan Against Shares (LAS)/ Line of Credit (LOC) application.
  • If you want to apply for Promoter Funding, download the application form.
  • Our Relationship Manager can meet you at your convenience.

Do you have questions?

Call 1800 270 7000 or write us at care.finance@adityabirlacapital.com.

Promoter Funding FAQ's

Promoter funding is a capital where company's founders or major shareholders invest to support its operations or expansion.

Choosing promoter funding offers financial backing for a company's growth. It showcases faith in the business from its founders or shareholders, boosting investor confidence and potentially attracting more funding. It also lets the company maintain control over its operations and strategies, reducing dependence on external capital.

Borrowers may need additional collateral beyond the usual assets to secure loans. It could include personal guarantees from the promoters or major shareholders, pledges of their shares in the company, or other valuable assets that demonstrate their commitment to the loan and the business's success.

You must approach financial institutions offering promoter financing. Submit your business plan, financial statements, and details of the promoters' stakes in the company. Upon approval, negotiate terms and finalise the agreement, ensuring compliance with any collateral or personal guarantee requirements.

You can foreclose the loan facility, subject to a 2% foreclosure charge on the outstanding amount. Interest will be charged on a pro-rata basis for the outstanding amount as of the foreclosure date.

What do we offer?

  • Loan Against Shares

A term loan against your equity shares that gets you financial flexibility without disrupting your long-term investment strategy. Loan Against Shares is better than loan against other securities like property or gold.

  • Loan Against Mutual Funds

We offer you the opportunity to receive immediate liquidity against your mutual fund units. Loan Against Mutual Funds is an overdraft facility for short-term monetary requirements with a shorter tenure.

  • Loan Against Life Insurance Policy

Leverage your existing life insurance policies to quickly generate cash reserves. Loan Against Life Insurance Policies helps you liquidate existing policy(ies) to get funds for professional or business purposes.

  • IPO Financing

ABFL offers you an opportunity to leverage your funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing bridges the gap between required funds and the resources at hand at a predefined margin.

  • Promoter Funding

ABFL’s Promoter Funding is one of the most reliable business funding options against your shares. It helps you gain a financial solution without disrupting your long-term investments. 

A term loan against your equity shares that gets you financial flexibility without disrupting your long-term investment strategy. Loan Against Shares is better than loan against other securities like property or gold.

We offer you the opportunity to receive immediate liquidity against your mutual fund units. Loan Against Mutual Funds is an overdraft facility for short-term monetary requirements with a shorter tenure.

Leverage your existing life insurance policies to quickly generate cash reserves. Loan Against Life Insurance Policies helps you liquidate existing policy(ies) to get funds for professional or business purposes.

ABFL offers you an opportunity to leverage your funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing bridges the gap between required funds and the resources at hand at a predefined margin.

ABFL’s Promoter Funding is one of the most reliable business funding options against your shares. It helps you gain a financial solution without disrupting your long-term investments.