Canara Cash: How to Avail Loans Against Shares, Bonds and Mutual Funds

In today’s fast-paced world, financial needs can arise unexpectedly. Whether it’s to meet business requirements, personal emergencies or investment opportunities, having quick access to cash is essential. We address this need with Canara Cash, a unique loan facility that allows customers to avail funds against their investments in approved Shares, Debentures, Bonds or Units, without the need to liquidate them. This ensures that the funds remain productive while supporting the fulfillment of urgent financial requirements.

What is Canara Cash?

Canara Cash is an innovative lending product offered by us that allows both existing and new customers to borrow against their investments held in a Demat account maintained with the bank or its approved Depository Participants (DPs). The loan can be used for a variety of purposes, including business needs or genuine personal requirements. By pledging investments, instant funds of up to Rs. 20 lakh can be accessed, while the investments continue to earn returns, making it a smart and efficient financing solution.

Canara Cash: Key Details

The loan is designed with flexibility, security, and convenience in mind:

  • Purpose: To avail funds by pledging approved Shares, Debentures, Bonds or Units.
  • Loan Quantum: Maximum loan quantum is Rs.20 Lakh wherever DEMAT accounts are maintained at our DPs.
  • Margin: On approved shares/ debentures /bonds Shares & Debentures- 50% of market value, PSU Bonds- 30% of market value , on approved units of UTI / Canara Robeco 50% of NAV/ repurchase price or the market value, whichever is lower
  • Processing Charges: Nominal fee of 0.1% of the loan amount (minimum Rs. 100, maximum Rs. 250). For overdraft facilities, charges are applicable for each renewal or enhancement.
  • Repayment Tenure: Up to 60 months. EMI repayment is acceptable and selective overdraft limits can also be considered.
  • Security: Security of the shares / debentures / bonds and units of UTI and Canara Robeco as per the approved list circulated from time to time. During the currency of the loan / limit, part release / substitution of securities should not be permitted for more than 10 occasions. For every substitution / release, a fee of Rs.100/- should be collected.

Benefits of Canara Cash

Canara Cash offers numerous advantages that make it a preferred choice for borrowers:

  • Returns Continue While Borrowing: Investments continue to earn returns, ensuring no loss of potential gains.
  • No Liquidation Required: There is no need to sell investments even during urgent financial needs.
  • Maximum Loan Amount: Borrow up to Rs. 20 lakh if the Demat account is maintained with the bank’s approved DPs.
  • Attractive Interest Rates: Loans are offered at competitive rates with a reducing balance interest method.
  • No Prepayment Penalty: Early repayment does not attract additional charges, providing greater flexibility.
  • Minimal Processing Fees: A nominal fee ensures cost-effective borrowing.
  • Flexible Repayment Options: EMI or bullet repayment options allow repayments to be structured according to convenience.
  • Use Canara Bank EMI Calculator: Plan repayments efficiently using the bank’s EMI Calculator, which helps estimate monthly instalments based on loan amount, interest rate and tenure.

Who can Apply?

  • Existing Customers: Those with a satisfactory track record with Canara Bank.
  • New Customers: Well-introduced individuals with satisfactory OPL/market reports on them.
  • Age and financial profile will be considered as per bank norms.

Why choose us for Canara Cash?

We have been a trusted financial partner for decades, offering innovative products that meet modern financial requirements. By choosing Canara Cash, borrowers gain:

  • Speed and Efficiency: Quick loan approval and disbursement to meet urgent financial needs.
  • Security and Reliability: Collateral is professionally managed and investments continue to earn returns.
  • Flexibility: Loan amounts, tenure and repayment options can be tailored according to borrower needs.
  • Digital Tools: The Canara Bank EMI Calculator ensures convenient planning and transparency in repayments.
  • Customer-Centric Approach: Personalized service and expert guidance at every step ensure a hassle-free borrowing experience.

Conclusion

Canara Cash enables access to funds quickly against shares, debentures, bonds or mutual fund units without liquidating investments. With flexible repayment options, minimal processing charges, competitive interest rates and secure management of collateral, it ensures financial needs are met efficiently and responsibly. This facility allows individuals to address urgent requirements while their investments continue to grow, combining liquidity with sustained wealth creation. Additionally, borrowers can plan their finances with confidence, take advantage of immediate opportunities and maintain uninterrupted growth of their investment portfolio, making it a practical and reliable financial solution for both personal and business needs.