If you wish to take a loan in order to buy shares in an IPO, you can do so from banks and finance companies. They provide finance for subscribing to shares in the public / rights issues of reputed companies that are/will be listed as per the listing requirements of NSE / BSE.

In order to avail of this loan you will be charged interest for the period for which you utilize the funds, i.e. from the date of closure of the issue till the date of the refund of money (in case of no shares being issued) or the repayment of the loan. You will also be charged a processing fee that is either a small fixed amount or a percentage of the amount funded. Lastly, the loan amount offered is usually about 50 per cent of the total value of your application bid and you will be required to put up the balance (your contribution is called margin money) of the application money.