Mirae Asset Financial Services has launched an entirely digital loan against shares facility for CDSL demat account holders, reducing approval times from days to same-day processing and broadening access for retail investors in India.
Mirae Asset Financial Services has expanded its digital lending push with a loan against shares facility for investors holding securities in Central Depository Services Limited demat accounts, adding to a similar offering it introduced for National Securities Depository Limited account holders in 2022. The non-banking finance company, part of Mirae Asset Financial Group, said the new service is designed to make borrowing against investments faster and less cumbersome for retail clients.
Until now, investors with CDSL demat accounts generally had to work through a manual, paper-heavy process that could take 7 to 10 days. The new route is fully online through the company’s website or mobile app, allowing customers to choose the shares they want to pledge, complete authorisation digitally and avoid branch visits or physical documents.
According to the company’s website, borrowers can enter their 16-digit BOID, or Beneficial Owner Identification Number, to see eligible holdings in their CDSL account and select the quantity to be pledged. After the request is verified with a one-time password and approved by the depositor participant, the shares are pledged digitally and the loan account can be opened on the same day. CDSL has more than 18.5 crore demat accounts, giving it a share of over 80% of the market, the company said.
Mirae Asset Financial Services said loans start at ₹25,000 and can go up to ₹1 crore, with the amount determined by the category of shares pledged. The company classifies approved shares into four buckets based on factors including market capitalisation and price volatility, with loan-to-value ratios ranging from 30% to 45% and interest charged at 10.25% on the outstanding amount. Krishna Kanhaiya, chief executive of Mirae Asset Financial Services, said the move opens the door to a broader base of retail investors by offering a quicker way to unlock funds without selling holdings, and that the group sees strong demand for simple, transparent and fully digital lending products.
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