HDFC Bank has completely digitized its loan sanctioning system enabling customers to get loans against shares in about two-three minutes. The bank has tied up with National Securities Depository (NSDL) and shares dematerialized by NSDL and executed through HDFC Bank demat account could be used for pledging. The two entities had consulted the Reserve Bank of India before developing the product. Arvind Kapil, country head, Unsecured, Home and Mortgage Loans of the bank, said there would probably be no second lender who has managed to put this on the table. An HDFC Bank customer can now login to the bank website and pledge his shares, dematerialized by NSDL, and can get instant loans, deposited in a freshly opened current account. The customer does not have to fill any forms or visit any branch of HDFC Bank. The bank has identified more than 400 widely traded shares that are acceptable for pledging. The loan can be roughly 50% of the value of shares pledged or more, depending on the credibility and float of the underlying company. The maximum regulatory ceiling for the loan is Rs 20 lakh
