Margin Trading Financing (SEBI MTF)

Clients looking for instant liquidity to trade in large volume of shares but desiring to carry their positions forward for longer period can avail of MTF facility as directed by SEBI. This facility can be seamlessly linked to the broking account held with JM Financial Services by execution of a simple rights and obligation document.

Just like any other funding facilities, the client will have to maintain agreed minimum margins in the account by way of cash or approved securities. Thus a client can avail greater leverage to diversify their portfolio and make the most of the market opportunities at the time of placing the order itself.

The loan amount can be repaid partially or fully at any time by the client and holdings will be released to the client’s Demat account with JM Financial Services.

Statement of loan and funded shares will be circulated to the clients on a daily basis so that he is abreast of the status of his loans. All SEBI MTF trades will be marked differently in the contract notes at the end of the day for easy identification.

Loan Against Securities

A lifetime is spent in building a productive portfolio of financial investments so that you may reap the benefits of their returns later. So, when faced with an unexpected liquidity requirement, why should you dilute your investments? The Loan against Securities product is offered through our group company, JM Financial Products Ltd. and JM Financial Capital Ltd.

Tide over liquidity requirements by availing instant loans at low interest rates, against the portfolio without the need to actually sell them. Loans are offered for a portfolio of investments including shares, mutual funds and bonds.

Count on us to be a benefactor in times of needs, as our group’s loan products can be used to cater to legal and legitimate borrowing requirements, business purpose, short term working capital requirements or meeting family obligations like marriage, higher education of self or children, medical expenses, etc.

Loans are granted as high as 50 crores and for an extended tenure of 12 months against the pledged securities from the approved list as prescribed by JM Financial. During the tenure of the loan the client continues to enjoy all the corporate benefits accrued on the securities.

Margin Trade Financing (through NBFC)

We facilitate our clients investing in exchange traded securities and avail loans to fulfill their settlement obligations of the Exchange(s). The clients stand to benefit from such loans as they can invest or trade without blocking their entire investment capacity by deploying their own cash fully.

The client has to maintain an agreed minimum margin in the account at a given point of time by way of cash or approved securities. Clients can leverage their enhanced liquidity to buy more securities and keep the delivery of the same for longer period of time with their partial margin.

Thus the product is suitable for clients who desire instant liquidity and wish to take advantage of investment opportunities in the market, without selling existing investment or involving fresh funds. This enables the client to participate in the markets even during dampened market conditions when liquidity could be a challenge.

This offering is presented through our group companies, JM Financial Products Ltd. and JM Financial Capital Ltd.

Loan Against Property

Property has always been considered as a locked investment. With the Loan Against Property offering our clients can unlock the value of their investment by using their property/ies as a collateral to avail loans and fulfill their business and personal needs. Clients have the opportunity to make the most of the economic worth of their property without giving away ownership.

On one hand clients can cater to their business needs which could range from meeting credit needs of the trade to implementation of business expansion plans. On the other hand they can take care of their personal needs such as renovation of existing residential property or even a going on a dream vacation.

Clients have the benefit to mortgage existing residential or commercial property and avail a term loan or a Line of Credit (OD) facility or a combination of both. A term loan is a fixed EMI product with the loan being disbursed in a single shot or a couple of tranches, whereas Line of Credit facility allows our clients to use funds as per their need with the interest being charged to the amount being utilized.

In extension to this offering, our clients can also choose from the following products:

  • Commercial Property Purchase : Clients can avail a term loan to purchase a commercial property such as an office, showroom or a shop.
  • Balance Transfer : Clients who have already availed Loan Against Property from another institution can choose to transfer their balance term loan or Line of Credit facility to us while enjoying the benefit of higher refinancing with competitive commercials.
  • Top Up Facility : Based on the repayment track record and existing property value, clients can avail a Top Up facility on their existing Loan Against Property. This option is available for both term loan and Line of Credit facility.

These products can be availed through our group companies, JM Financial Products Ltd and JM Financial Capital Ltd.

Education Institution Lending

The success of our future generations lies in the hands of progressive educational institutions. While the need for devoted teachers, parental involvement and sound education systems are paramount, state-of-the-art infrastructure at educational institutes with modern amenities act as a strong enabler in imparting quality education to the growing influx of students.

We have been working closely with educational institutions and have understood the financial needs of the Edupreneurs which gives us the expedience to suitably assist them in growing and expanding their Institution by providing financial assistance by funding through our product - Education Institution loans.

We provide both - long term and short term financial assistance to the entire gamut of the education eco-system predominantly to Pre-schools, Affordable Private Schools, Private Schools, Private Colleges, Education Franchises, Coaching Centers, Training Institutes including Technical and Professional, Training and to diversified education groups.

Financing assistance caters to supplement for new construction, implement renovations, acquire infrastructural facilities, purchase of land for expansion of facilities, purchase of equipment, debt consolidation, augment working capital requirement and enablers even for institutes with a lower vintage.

With fairly flexible credit norms and cash-flow based underwriting model that takes into account both current and projected incomes, products have been designed to facilitate flexible and customized repayment plans keeping in mind the different life cycle of the Institute as well as their income schedules. These products can be availed by our group companies, JM Financial Products Ltd and JM Financial Capital Ltd.

With a reliable financial partner, attractive rates of interest, tailor-made repayment terms, time bound and hassle free processing available on hand educational institutes can aspire to build a world class Institute.

ESOP Financing

While Employee Stock Options (ESOP) serve as an ideal avenue to instate a sense of ownership amongst employees, our funding offering enables clients to avail an aggregate loan amount upto a defined percentage of current market price of the shares of the company issuing the ESOP.

Through this offering we assist employees to avail funds for exercise of the options by a hassle-free funding process to purchase shares and sell at a later date to realize its potential profit.

Our ESOP Loans are offered under two variants of :

  • Term Loan with Back Ended Interest Payment Facility
  • Demand Loan with Option to pay Interest Monthly/Quarterly

The ESOP loans can be repaid at any time after disbursement but before the end of tenure of the loan, hence there a monthly EMI does not apply. Repayment can be made by the client out of their own source of funds or by selling the shares.

These products can be availed through our group companies, JM Financial Products Ltd and JM Financial Capital Ltd.

IPO Financing

The financial markets often witness companies floating equity public offerings to raise funds for their needs. Many of these companies bear good prospects in terms of future returns which reflect in their stock prices. Through IPO financing we facilitate our clients’ application for equity shares offered in the IPO by advancing a loan at competitive terms against an upfront cash or stock margin. The documentation is minimal for existing clients and funding is handled in a time bound manner, so as to ensure speedy and timely processing.

Our IPO financing offering allows clients to participate in the opportunity even with limited personal funds. The client pays only the upfront market linked margin and the remaining amount is funded by JM Financial. This grants an additional leverage to the client as it allows applying for a far higher no. of shares. Once the shares are allotted and listed the client may choose to hold them for long term appreciation or sell them for listing gains, if any.

This product can be availed through our group companies, JM Financial Products Ltd and JM Financial Capital Ltd.

Promoter Financing

With a view to aid Promoters to boost and expand their business we offer loans against collaterals which not only comprise shares of their listed Group Companies but also immovable assets and properties.

Promoter financing offer is extended to Sponsors, Holding Companies, Operating Companies and Special Purpose Vehicles, in order to meet their diverse requirements when traditional templates of interest servicing, security, tenor, principal repayment, may not prove to be feasible. We engage in meticulously processing the details of the offering because of their involvement of the type of borrowers, underlying nature of collateral security, special structures of the transactions, etc.

Over time we have built strong relationships with several of India’s Top 200 promoter groups. Our endeavor is to strengthen the relationships with our existing clients, while also prudently building new partnerships with more promoter groups and corporate houses. We aim to create custom made lending solutions for unique situations that include strategic acquisitions, without compromising on the standards of the securities pledged or mortgaged in our favour.

Broker Financing

We understand that traditional funding options can be difficult to obtain by brokers and broking entities and sometimes they may not qualify for conventional financing. As one of the largest players in the NBFC business, we offer Broker Funding offering to such entities. Customized financing structures can be designed as per the requirements of the broker availing the financing.

This product allows existing brokers to grow their business to the full potential without being restricted for the want of capital. The offering helps them fuel their day-to-day operations with working capital or meet other business goals. It also enables them to extend favorable financing terms to their clients thereby accelerating their business and maintaining their client loyalty.

Funding through this platform covers most capital market instruments. We accept an extensive list of Equities, Bonds, NCD’s and Mutual Funds as collateral. An essential part of our offerings is an experienced and dedicated risk team that manages the collateral exposure limits on a close to real time basis with timely updates to borrowers which allows them to take appropriate steps in a volatile market situation.

Through our robust systems and efficient processing team we strive to deliver a steadfast and a highly responsive experience. Additionally, Brokers & Broking entities through this product can leverage JM Financial group’s expertise, reach & depth in the securities lending business to remain abreast with changing market dynamics.