Manage contingencies by availing loan against mutual funds
A pre-approved credit limit allows you to borrow money based on your need and only pay interest on the money utilized. Leverage your investments in mutual funds for loans to meet your expenses!!
Loan for all your goals
Features and benefits of our loan against mutual funds
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Features and benefits of Bajaj Finance Loan Against Mutual Funds
Watch this video to get a quick view of the salient features of our Loan Against Mutual Funds
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Pre-assigned loan limit
Get a pre-assigned loan limit of up to 90% of the value of your funds. Maximum loan limit of up to Rs. 5 crore
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5000 + approved funds
With over 5000 funds from 40+ AMCs, get loan with just 3 documents. The loan amount will vary based on the fund type.
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Interest on withdrawn amount
The interest is charged only on the amount you have withdrawn from your pre-assigned loan amount.
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No sell-off mutual funds
No need to sell your mutual funds. Get funds at attractive rates while continuously earning returns on your funds.
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Tenure of up to 36 months
Convenient tenure and repayment options starting from 7 days to 36 months.
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Loan limit based on fund type
The final loan limit depends on the type of fund (equity, debt, hybrid etc ), and the value of the fund. Check the applicable credit limit against each fund.
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Pre-approved offers for new customers
We have pre-approved offers for our existing and new customers. To check, all we need is your mobile number.
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Dedicated customer portal (My Account)
Download your loan statement, release funds and manage your loan online with our customer portal- My Account.
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Extra credit for increased share value
If the value of your mutual fund increases during the tenure of the loan, you can avail extra credit against the lien marked funds.
Eligibility criteria and documents required
Anyone can apply for our loan against mutual funds online, as long as they meet the four basic criteria mentioned below. Also keep a few documents handy while applying for loan against mutual funds.
Eligibility criteria
- Nationality: Indian
- Age: 18 to 90 years
- Employment: Salaried, self-employed
- Security value: Minimum Rs. 50,000
Documents
- PAN card
- KYC documents: Aadhaar/ passport/ voter’s ID
- Consolidated Account Statement
Corporates/ HUF/ LLP/ Partnership/ Trust/ Sole Proprietorship can apply for loan against mutual funds of up to Rs. 1000 crore, by reaching us at las.support@bajajfinserv.in.
How to apply for a loan against mutual funds
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Did you know?
You can continue earning returns on investments while accessing funds
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Did you know?
You pay interest only on the amount you utilise
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Did you know?
You can avail extra credit against increased share value
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Did you know?
You can manage your loan online with our customer portal
Interest rate and charges
The following charges are applicable on loan against securities:
Type of fee |
Applicable charges |
Rate of interest |
20% |
Processing fees |
4.72% |
Part-prepayment charges |
4.72% |
Annual maintenance charges |
1.18% |
Bounce charges |
Rs. 1,200/- |
Penal charge |
Delay in payment of instalment (as per payment frequency mentioned in the Sanction Letter) shall attract penal charges as more particularly described in Annexure I from the respective due date until the date of receipt of instalment (as per payment frequency mentioned in the Sanction Letter)/principal/overdue amount. To view Annexure I, kindly click here. |
Stamp duty |
Payable as per state laws and deducted upfront from loan amount |
Brokerage charges |
As applicable |
DP charges** |
As applicable |
Foreclosure charges |
Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. |
Pledge confirmation charges** |
As applicable |
Pledge invocation charges** |
As applicable |
Demat share transfer charges (post invocation)** |
0.024% + flat Rs. 5.9/- (inclusive of applicable taxes) or Rs. 64.9/- whichever is higher |
Legal charges |
As applicable at actuals |
PG facility charges |
Rs. 11 (Inclusive of applicable taxes) will be charged for utilising the payment gateway to make part or full payments towards the loan through digital properties. |
*Charges levied by Broker to BFL and the same is being passed on to the clients.
**Charges levied by NSDL/ CDSL to BFL and the same is being passed on to the clients.
Frequently asked questions
The loan against mutual funds facility available through the Bajaj Finance platform is only applicable for individuals, for loans up to Rs. 5 crore. We also provide offline loans against mutual funds up to Rs. 1000 crore to Corporates/ HUF/ LLP/ Partnership/ Trust/ Sole Proprietorship. The final amount approved will depend on the applicants' credit histories, the worth of the funds pledged, and other factors at Bajaj Finance Ltd. ("BFL"sole )'s discretion. For further information on using this service, please contact us at las.support@bajajfinserv.in.
You can avail of a loan against mutual funds by lien marking the 5000 + funds. Click here to check our approved list of mutual funds.
The loan-to-value currently offered against mutual funds are as follows:
For Mutual Funds: up to 90%
Please note that the above are subject to change depending upon the applicable regulations and internal policies of BFL.
The tenure of the loan 7 days to 36 months. Any renewal of the loan/facility shall be at the sole discretion of BFL.
For sanctioning loans against mutual funds, we have 5000 + approved schemes, units of which are acceptable to BFL. The list of approved securities may be modified by BFL from time to time as per the internal policies and procedures of BFL.
For any assistance with regard to a loan against securities you can write to us at las.support@bajajfinserv.in.
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.
You can view the list of securities pledged by you to BFL by viewing the IVR (Interim Valuation Report) available under View Statements in the LAS service section.
BFL offers loans up to 90% of the value of your funds, where the valuation of your funds is updated every 5 mins. Hence, if the value of your funds increases during the tenure of the loan, the eligible pre-assigned loan limit will increase. Similarly in case the value of fund falls, the pre-assigned loan limit will reduce proportionally. This would be subject to “Sanction limit” not getting breached.
To raise a request for additional disbursement, please choose the 'Disbursement Request’ option in the Loan against securities service section available under the ‘My Relations’ tab.
Please note it is subject to LTV being continued to be maintained with respect to the securities pledged and principal outstanding.
For mutual fund schemes, it is updated at the end of every day.
Interest on a loan against mutual funds facility is payable monthly.
No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.
The interest cycle is calculated from the 7th day of each calendar month to the 6th day of the succeeding month. Interest due towards a loan against securities is generated on the 7th of every month.
All AMCs registered with CAMS (Computer Age Management Services) and K-Fin Technology (Registrar) can be pledged to avail of a loan against mutual funds.
Opening a loan against mutual funds account through the Bajaj Finance platform with respect to individual Borrowers and which is subject to successful KYC completion.
For easy and smooth onboarding, we recommend keeping the below documents handy:
- PAN card
- Proof of Identity and Address (Aadhaar, Passport, Driving Licence, Voter ID etc.)
- Fund holding statement
- Share your holding statement at Las.support@bajajfinserv.in
- Lien letter shall be prepared by us on the free units & sent back to via mail along with Bajaj Covering letter for your attestation
- Shares the docs back with us at Las.support@bajajfinserv.in & your lien request letter will then further be submitted to the AMC
- AMC will review and lien mark post verification
*Final loan amount shall be calculated basis of the units & price of effective lien marked mutual funds.
Post successful execution of agreement and additional documents as required by BFL, and lien marking of mutual funds, the loan amount will be disbursed to your registered bank account within minimal time.
90% LTV is always required to be maintained for loan against funds facility. LTV may alter as a result of regulatory Changes. Any shortfall in the maintenance of the 90% LTV occurring on account of movement in the fund prices shall be filled within 7 business days.
Further, in case the Drawing Power (DP) to Loan value falls more than 85% then BFL will go ahead with the liquidation of mutual funds with an intimation to the borrower.
You can repay the shortfall or mark lien on additional mutual funds to make the shortfall good.
In case you fail to fulfil the shortfall within 7 business days, Bajaj Finance Limited holds the right to sell the lien marked mutual funds to make good the shortfall.
You can release securities, provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within minimal time post-verification.
To avail loan against mutual fund, an individual should be between 18 to 90 years of age.
A loan against a mutual fund is a type of borrowing that allows individuals to avail of a loan from a lender by pledging their mutual fund units as collateral.
The major risk associated with taking a loan against mutual funds is the possibility that the value of the pledged units may fall and result in the borrower needing to pledge additional mutual funds or repay the loan. If the borrower fails to repay the loan amount, the lender may liquidate the mutual fund units to recover the amount owed.
The terms and conditions of the loan depend on the lender.
