Currently, loan can be availed against listed equity shares. ( Check approved list of lender partners )

Coming Soon: Customers will be able to avail loans against mutual fund units, bonds, national savings certificates, gold bonds, NCDs on spark.loans app.

• A demat account with Choice Equity Broking (Jiffy)
• Approved securities in the demat account to pledge

For registration on spark.loans, one needs to provide his mobile number. Once the mobile number is verified, user shall be asked to provide his/her PAN and date of birth to fetch KYC and other details from Choice database.

After completing KYC, user can avail loan by pledging the securities available in the demat account:

• Select “New Loan” option from the dashboard
• Select “Shares” [ “Mutual Fund” coming soon ]
• You will be able to view all the approved securities in your demat account
• Select and confirm the securities you want to pledge
• E-Sign the loan agreement (Aadhar based)
• Loan Limit gets approved

Following fees and charges are currently applicable by our lending partner, M/s Choice Finserv (P) Ltd on LAS –

• Processing Fees – Users would be charged one time processing fees on the amount of loan (overdraft limit) sanctioned by our lending partner(s). The processing fee would be 0.0% of the limit sanctioned. The fee is valid for a period of 12 month. Renewal Fees is 0.5% of the limit renewed.
• Mortgage charges – Users would be charged one time mortgage charges on the amount of loan (overdraft limit) sanctioned by our lending partner(s). The mortgage charges are presently NIL.
• Documentation and Stamp duty charges – User will be charged one time documentation charges of Rs. 0/- and stamp duty at actuals.
• Collection Charges on Sale of Securities in the event of default or otherwise - 0.65% of the sale amount plus all brokerage, incidental transaction charges, costs and expenses and other levies as per actuals.
• Transaction Charges per Request (per variation in the composition of the Demat securities pledged) - Upto Rs.100/- per request
• Credit Information Companies'(CICs) Charges- Upto Rs 100/- per instance (For Individuals)
• Legal & incidental charges - As per actuals

GST and other government levies would be charged additionally as applicable. The above fees/charges are standard rates. Above fees/charges are subject to change from time to time as per Lender's policy and are non-refundable.

No, you have to pay interest only on the loan amount utilized/withdrawn.

There are no restrictions on the usage of the loan amount – you can use it for sponsoring a trip to your dream destination, you can use it for your own or your closed ones’ wedding and the applications are endless. You can also use the funds for your business needs. You cannot use the money for speculative and illegal activities like gambling, betting, any other activity prohibited by the government.

You are approved with a drawing limit i.e. you have to pay interest only on the amount utilized, so if you don’t need the funds right now, you will be charged with nothing.

For Shares

Lender : Choice Finserv (P) Ltd.

For Mutual Funds – Coming soon

User can view all the recent transactions and can even get the sanctioned limit, drawing power, loan balance, interest due, collateral value, etc on ‘My Loans’ tab. Users can download or email their loan statements of the required period upon clicking “view statement” – download /email options.

User can easily pay loan and interest due from Spark.loans app only.

The collateral value may fall due to reduction in prices of underlying securities. This will reduce the drawing power of the loan. If the drawing power falls below the loan balance, it results is Margin Shortfall.

1) When the drawing power’s value falls below the loan amount (Less than 15%), 96 hours (Excluding bank holidays) will be available to the customer to mitigate the shortfall. Post 96 hours, sale will be triggered and lender will sell pledged securities as required.

2) When the drawing power’s value falls below loan amount (greater than or equal to 15% but less than 25%), the customer will have time till end-of-day (hours up to 10:00 PM EOD) to mitigate the shortfall. After this, sale will be triggered and lender will sell pledged securities as required.

3) When the drawing power’s value falls below loan amount (greater than 25%), the sale will be triggered and lender will sell pledged securities as required.

There are three ways one may mitigate the margin shortfall:

• Pledge additional securities
• Pay loan
• Sell collateral

• Go to ‘More’ tab or Go to ‘My Securities’ tab
• Click on ‘Unpledge’
• Select the securities you want to Unpledge
• Enter OTP sent on your registered mobile number to complete the process

• Go to ‘More’ tab or Go to ‘My Securities’ tab
• Click on ‘Sell Collateral’
• Select the securities you want to sell
• Complete the process by entering the OTP sent on your registered mobile number

Loan Transaction Statement:

• Go to ‘My Loans’
• Click on “View Statement”
• Go to “Download” tab
• Download or email the statement as per your requirements

Securities Transaction Statement:

• Go to “My Securities”
• Click on “View Pledged Securities Transactions”
• Go to “Download” tab
• Download or email the statement as per your requirements

• Go to ‘More’ tab
• Click on ‘Increase loan’
• Mention the ‘Required OD limit’
• You will get an estimate for the value of securities you would have to pledge for the increased limit
• Select and confirm the additional securities you want to pledge
• E-Sign the loan agreement
• increased loan limit shall be approved

Whenever the collateral security value increases by more than 10% of that required for the sanctioned limit, system will show a “Top Up” banner on Dashboard and under ‘My Loans’. To avail the Top Up -

• Click on ‘Top Up’ banner
• Enter the Top Up amount you wish to avail (or click ‘Full available amount’)
• E-Sign the loan agreement
• lncreased loan limit shall be approved