Is BIG LOANS a bank or NBFC?

No. BIG LOANS is a debt advisory and loan facilitation firm. We are not an RBI-regulated lender and do not lend on our own balance sheet.

What is the minimum and maximum ticket size BIG LOANS handles?

Our focus is ₹100 crore and above. We routinely arrange transactions up to several thousand crore through syndication.

Which industries does BIG LOANS serve?

BIG LOANS is industry-agnostic across manufacturing, real estate, infrastructure, healthcare, energy, IT/ITES, hospitality, NBFC, fintech and more.

What is the typical timeline from mandate to disbursement?

Typically 6–12 weeks for working capital, 10–16 weeks for term loans, and 12–24 weeks for syndicated project finance.

How does BIG LOANS charge its fees?

A modest engagement retainer plus a success fee linked to actual disbursement, governed by a written engagement letter.

Does BIG LOANS guarantee loan sanction?

No. Sanction is the sole prerogative of the regulated lender, based on its credit policy.

Service · Promoter Funding

Promoter funding, against shares you already own.

Loans against pledged listed and unlisted shares — for stake consolidation, creeping acquisition, IPO bridge financing, or personal liquidity. ₹100 Cr+ structured through AIFs and select NBFCs.

Ticket: ₹100 – 1,000 CrLTV: 40 – 60% of valueTenor: 1 – 5 years

Discuss your mandate → See the process

What is promoter funding (loan against shares)?

Promoter funding is a loan extended to the promoter (or promoter holding company) of a listed or unlisted company, secured by the pledge of shares in that company. Indian promoter funding typically lends 40–60% of the market value of listed shares (lower for unlisted) and runs 1–5 years. Common end-uses: stake consolidation, creeping acquisition, IPO bridge, business diversification, or personal liquidity. Regulated under SEBI ICDR, RBI norms on capital-market exposure, and prudential LTV caps.

Section 01 — Overview

Capital from shares without selling them.

For a promoter who owns significant shares but wants liquidity without diluting holding, promoter funding is the classic answer. The shares stay in the promoter's name; only the right to sell (in default) is pledged.

In India, promoter funding is regulated and concentrated — restricted under SEBI capital-market norms, with strict LTV caps and margin call mechanics. BIG LOANS arranges these through specialist NBFCs and AIF credit funds.

Listed shares: 40–60% LTV depending on liquidity and concentration
Unlisted shares: 25–40% LTV, based on last-round valuation
Margin call mechanism: top-up cash/shares if value falls below threshold
Tenor 1–5 years, typically bullet repayment
Pledge under SEBI DP — promoter retains voting rights until default

Listed LTV

40 – 60%

Unlisted LTV

25 – 40%

Tenor

1 – 5 years

Pricing

11 – 16% p.a.

Margin trigger

125 – 150% cover

Repayment

Bullet / interest-only

Section 02 — Use cases

When promoter funding fits.

Six common situations where promoters approach BIG LOANS for loan-against-shares structures.

Stake consolidation

Buying out a co-promoter, partner, or PE investor. Promoter loan funds the purchase, shares of the same company collateralise.

Creeping acquisition

Promoter wants to increase holding through open-market or block-deal purchases — funded by loan against existing shares.

IPO bridge financing

Pre-IPO promoter looking for personal liquidity 6-12 months before listing, repaid from post-IPO sale or pledge release.

Business diversification

Promoter wants to fund a new venture or invest in another sector without dipping into the operating company.

Tax / estate planning

Liquidity for promoter to pay estate duties, settle family arrangements, or fund philanthropic obligations.

Margin call rescue

Existing pledge loan facing margin call; refinanced into a fresh facility with better terms or longer tenor.

Section 03 — At a glance

Listed vs unlisted shares.

Feature	Listed shares	Unlisted shares
LTV	40 – 60%	25 – 40%
Valuation basis	Daily market price	Last-round / fair-value
Margin call frequency	Daily mark-to-market	Quarterly or event-based
Lender appetite	Wide — banks, NBFCs, AIFs	Narrow — AIFs only
Pricing	11 – 14%	14 – 18%

The promoter pledges shares; the lender lends a percentage of market value; cash is used for personal or strategic purposes.

Section 04 — Our process

How promoter funding closes.

Typical 4 – 8 weeks. Faster than corporate term loans because the security (shares) is liquid and quickly valued.

Shareholding diagnostic

Review of promoter's holdings, encumbrances, lock-ins (SEBI), free vs pledged. Compute eligible LTV.

Week 1

Lender shortlist

Specialist NBFCs and AIF credit funds (banks have limited appetite). 3-5 lenders pitched.

Week 2

Pledge documentation

Pledge agreement, margin agreement, escrow setup. Coordination with Depository Participant.

Week 3 – 5

Sanction + DP pledge

Sanction letter, pledge of shares created at NSDL/CDSL, confirmation to lender, CP satisfaction.

Week 5 – 7

Drawdown

Loan disbursed; ongoing daily margin monitoring; quarterly mark-to-market reporting.

Week 7 – 8

Section 05 — Documents

Promoter funding documentation.

Documentation is lighter than corporate term loans because the security is liquid and well-defined.

Shareholding documents

Demat statement, share certificates if physical, encumbrance certificate, SEBI lock-in declarations.

Promoter KYC

PAN, Aadhaar, passport, address proof, bank statements (12 months), ITRs (3 years), wealth statement.

Operating company info

3 years audited financials, listing details, recent results, analyst reports, group structure.

Pledge + margin docs

Pledge agreement, margin agreement defining triggers, escrow agreement for dividends.

Section 06 — Lender universe

Who funds promoter loans in India.

Banks have limited promoter-funding appetite due to RBI/SEBI capital-market exposure norms. NBFCs and AIF credit funds dominate.

01AIF Credit Funds (Cat-II — primary lenders)

02Diversified NBFCs (Bajaj, Edelweiss, Aditya Birla)

03Specialist Loan-Against-Shares NBFCs

04Family Offices (smaller / unlisted deals)

05Foreign Banks (selective — for top promoter families)

06Wealth Management / Private Banking arms

Section 07 — FAQ

Promoter funding — FAQs.

Why don't most banks offer promoter funding?

RBI regulates banks' "capital market exposure" with sub-limits per borrower (currently 40% aggregate of net worth). SEBI also restricts use of bank funds for IPO subscription. Most banks have small dedicated desks; NBFCs and AIFs dominate.

What if share price falls?

Margin call mechanism: if cover falls below threshold (typically 125–150% of loan), promoter must top up with more shares or cash within 5–10 working days. If not, lender can sell pledged shares.

Loan against partly-paid shares?

No. Only fully paid-up, unencumbered shares can be pledged. Partly-paid, call-in-arrears, locked-in (SEBI lock-in), or already-pledged shares are not eligible.

Do I lose voting rights when I pledge shares?

No — pledge under NSDL/CDSL keeps voting rights with the promoter until default. Lender can invoke the pledge and take ownership only after a defined event of default.

Where do dividends go?

Dividends typically flow to a designated escrow account. Per agreement, they may be released to the promoter (if cover is healthy) or applied against the loan (if cover is tight).

Loan against unlisted shares?

Yes, but lender universe is narrower (mostly AIFs and specialist NBFCs). LTV is lower (25–40%) because there's no daily market price — valuation is based on last-round or fair-value.

Often combined with…

Need promoter-level liquidity?

Let's structure your promoter funding.

Share shareholding details and end-use. We respond with eligible LTV, indicative pricing and lender shortlist within one working day.

Discuss your mandate → mandates@bigloans.in

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