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Login to NetBanking and select equity shares and equity mutual funds that you want to pledge. Accept the Terms of Agreement and authenticate the same via OTP. Pledge equity shares and equity mutual funds online.
Pledging here refers to an activity in which the borrower (pledgor) of funds uses securities as a form of collateral to secure the funds it borrows or takes from the lender (Pledgee).
Collateral is an asset?like a car or a home?that can help borrowers qualify for a loan by lowering the risk to a lender. Secured loans typically require collateral; unsecured loans usually don't. Auto loans, mortgages and secured credit cards are examples of secured loans.
To pledge assets as collateral (or Pledging) is the act of offering assets as collateral to secure loans. Assets pledged can be in the form of security holdings and act as assurance for recovering the borrowed amount should a borrower fail to pay up.
In business, a company may pledge various types of property as collateral. A borrower may pledge physical assets, such as equipment, machinery, real estate, buildings, or inventory, or it may pledge trade receivables, such as the value of the company's accounts receivable, which represents money owed to the company.