Mirae Asset Financial Services has launched a digital loan facility against equity shares held in CDSL demat accounts. According to reports from The Hindu BusinessLine, the NBFC arm of the Mirae Asset Financial Group now offers online processing through their website or mobile app, eliminating the need for manual, paper-intensive processes that previously took 7-10 days. This expansion builds on their 2022 launch of a similar facility for NSDL demat account holders, making it easy for investors with CDSL demat accounts to get a loan online.
The new digital platform allows customers to apply online, select shares for pledge, and authorize requests digitally without visiting branches or submitting physical paperwork. As reported by The Hindu BusinessLine, customers can enter their 16-digit BOID (Beneficiary Owner Identification Number) to securely fetch available shares in their CDSL demat account and select the number of shares to pledge. After verification using an OTP, the pledge request is sent to their Depository Participant for approval, with shares pledged digitally and loan accounts created on the same day. The entire process is completed online, with no physical paperwork required.
According to the company announcement, customers can avail loans from ₹25,000 to ₹1 crore against approved shares. The loan amount depends on the category of shares being pledged, with approved shares classified into four categories based on market capitalization and price volatility. The loan-to-value ratio ranges from 45-30 per cent and interest of 10.25 per cent is levied on outstanding loans. Interest is calculated only on the amount actually utilized, not on the total sanctioned loan limit. Customers can prepay or foreclose their loans at any time without charges and can also increase their eligible loan amount by pledging additional shares or reduce it by partially releasing pledged shares.
As reported by The Hindu BusinessLine, CDSL has over 18.5 crore demat accounts, representing over 80 per cent of India's demat market. This launch is significant because CDSL is India's largest depository by the number of demat accounts. Krishna Kanhaiya, CEO of Mirae Asset Financial Services, stated that the launch allows serving a larger community of retail investors by providing a smarter way to access funds without selling investments. The company aims to make borrowing simple, transparent, fast, hassle-free and completely digital, building on the encouraging response to their Loan Against Mutual Funds facility.
