Loan Against Shares for working capital – A Brief Note

The demand for working capital is directly related with the economy & in a growing economy businesses are getting several opportunities which they could not tap because of short of funds. 

Considering the demand, Financial Institutions are also coming out with innovative funding models so that their risk coverage remains intact along with high leverage. Working capital funding under “Loan against shares” is one of such model for NSE / BSE listed organizations in restrictive environment of funding.

We arrange working capital funds for listed companies from financial institutions provided there are adequate growth opportunities which can justify the enhanced requirement of working capital.

The funds will be with the company as unsecured but for risk coverage, the promoter’s shares are taken as security besides their personal guarantee to make good in case anything challenge faced after funding.