Loans against Securities enables you to obtain loans against your securities. So you get instant liquidity without having to sell your securities.

All you have to do is pledge your securities in favor of City Union Bank We will then grant you an overdraft facility up to a value determined on the basis of the securities pledged by you. Interest will be charged only on the amount withdrawn and for the time span utilized.

 

a. Shares /Debentures
b. RBI Relief/Govt. Bonds 
c. Mutual Funds Units
d. Insurance policy.

 

• Only resident individuals are permitted to apply .
• Hindu Undivided Families (HUFs), Limited Companies, Partnerships, Sole Proprietors, NRIs, Minors are excluded.
• Loans are granted only against the list of approved Scripts, as determined by City Union Bank.

• Name of the company to which the shares related to
• Reputation of the company
• Marketability of the shares
• Market value during recent years with special reference to stability of prices
• companies present financial position and its dividend history during the last few years.
• Financial policy whether prudent or otherwise- as indicated by distribution of dividends and the provisions made for reserves in the past
• prospects of the industry in general and the company in particular
• partly paid shares should not be accepted as security

1.  The general principles of lending should be followed and advances for speculative purposes or for cornering of shares should not be allowed.
2. Risk should be spread and advance against large block of shares of any single company should be avoided.
3. No advance can be made against bank's own shares.
4. Share certificate should bear a. The Common seal of the Company  b. The Certificate Number and the distinctive number of shares   
5. No advance against partly paid up shares
6. The shares must be in a marketable lots
7. Stipulated margin should be maintained at all times
8. The Drawing power should not exceed.

• Resident Individuals, Hindu Undivided Families (HUFs), Limited Companies and Partnerships are permitted to apply.
• Non Resident Indians (NRIs), Minors are excluded.

• Only resident individuals are permitted to apply.
• Hindu Undivided Family's, Limited Companies, Partnerships, Sole Proprietors, NRI.s, Minors are excluded.

    City Union Bank may give up to 50% of the market value of the shares. The marketability of these securities and the fluctuations in prices during the past few years are taken in to account.

  Loans against your insurance policy will enables you to obtain loans against your policy. So you get instant liquidity without having to preclose your insurance policies.

The following type of policies can be accepted as security:

• Endowment policy
• Whole life policy
• joint life policy

The following classes of insurance policies are not acceptable

• Children's  Endowment
• Children's Deferred
• Policies for estate duty payment and the like
• policies with nominations under Married Woman's Property act.

    The policy must have acquired a surrender value. The surrender value is ascertained by reference to L.I.C. of India

   Age of the insured must have admitted either on the policy itself or by a separate endorsement.

1. Margin of 15% is to be maintained on the surrender value.
2. There will not be any premium arrears and latest premium receipt must be produced.
3. The policy must be got assigned in banks flavor.
4. The assignment should be made in the policy itself.

For further clarifications and your business needs kindly contact the nearest City Union Bank Branch.