The Hindu Business Line : Federal Bank loans for IPO subscription

KOCHI: Federal Bank has introduced a new retail product, Federal Equity Subscription Scheme, for financing the IPOs and public issue applications of its customers.

Loan will be available to individuals for applying for IPOs and public issues approved by the bank. Up to 50 per cent of the application money is granted as loan, subject to a maximum amount of Rs 10 lakh.

The period of the loan is 60 days. No security is required and interest on the loan is 13 per cent, a press release from the bank has said.

The applicants should open a joint DP account with the bank. The loan is available through 20 branches in Kerala and from another 29 branches outside the State.

Federal Bank is the first old generation private sector bank to come out with a scheme for financing IPOs, the release said.

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