Many companies are issuing Employee Stock Options Plan (ESOP) for retaining their key staff. An employee who has been awarded ESOP can avail loan against exercised shares. The ESOP funding is a loan facility offered against these shares allotted to employees. This facility is also used by many corporates to facilitate exercise of ESOP options by their employees.

Features

• Loan available against shares allotted under ESOP
• Margin – 10% of the purchase price or 50% of the market value of the shares whichever is lower
• Attractive Interest Rate
• Tenor –  1  year with a option to renew at the end of term  
• Loan Amount – INR 2 Lacs to INR 50 Lacs
• Simple Documentation
• Available for selected listed corporate having strong fundamentals

Benefits

• Instant line of credit and interest is charged only on the amount utilized
• To take advantage of investment opportunity with small margin money
• Employee can create wealth in long run with appreciation in value of shares