What is Loan Against Mutual Funds?
Loan Against Mutual Funds is a type of loan where you can borrow money by using your mutual funds investment as collateral.
What is the credit limit and how is it calculated?
The credit limit is calculated by taking a percentage of the current market value of the mutual funds you wish to pledge. This percentage is 45% for equity MFs and 75% for debt MFs. To calculate credit limit, we will need your PAN, phone number linked to your mutual funds holdings. Checking your credit limit does not have any impact on your CIBIL score, however, it is a necessary step in order to determine your loan eligibility.
Which mutual funds are accepted for availing a loan against mutual funds?
For sanctioning loans against mutual funds, there are over 6000+ approved schemes in equity, debt & hybrid category.
What is the tenure of the loan against mutual funds?
The tenure of the loan is up to 36 months. During this tenure, you can do part-prepayment or foreclosure of the loan without any charges.
What is the process for availing a loan against mutual funds?
You can get an instant loan against shares online in 4 easy steps - a completely digital and paperless process.
What will my monthly payments look like?
On a monthly basis, you pay an interest at the rate of 10.50% p.a. on the outstanding loan amount. Additionally, you can choose to repay the principal at any time during the loan tenure. Eg, if you have an outstanding loan of 1L, your monthly payment would be (100000 x (10.50/12)/100) = 875
How much loan can I get?
You can avail a loan against mutual funds from ₹25,000 to ₹5,00,00,000.
