How to apply for Loan Against Mutual Funds

Apply online in just a few easy steps to get out loan against mutual funds.

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How to apply for a loan against mutual funds

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Step-by-step guide to apply for loan against mutual funds

Step 1: Click on the ‘Apply Now’ button.
Step 2: Enter your mobile number to Sign in and click ‘GET OTP’.
Step 3: Enter the OTP sent to your mobile number. On successful verification, you will be redirected to our online application form.
Step 4: Enter your basic details like – PAN, DOB and email ID.
Step 5: Check your loan eligibility by entering your security name and quantity.
Step 6: Choose the loan amount you wish to avail.
Step 7: Get your KYC done using Digilocker or by manually uploading the documents.
Step 8: Enter your bank details and verify.
Step 9: Proceed for e-agreement and e-mandate by authenticating it via OTP.
Step 10: Your loan will be disbursed after successful pledging and verification

More details

In most cases, the loan amount for a loan against mutual funds can increase if the value of the mutual fund increases. This is because the loan amount is typically calculated as a percentage of the value of the mutual fund.

When you take out a loan against a mutual fund, you pledge your mutual fund units as collateral. The loan amount is calculated based on the value of the mutual fund and the applicable loan-to-value (LTV) ratio.

For example, if you have a mutual fund worth Rs. 10,000 and the lender has an LTV ratio of 80%, you could potentially borrow up to Rs. 8,000 (80% of Rs. 10,000) against the mutual fund. If the value of the mutual fund increases to Rs. 12,000, the maximum loan amount would increase to Rs. 9,600 (80% of Rs. 12,000).

Frequently asked questions

What are the minimum and maximum loan amounts that can be availed against mutual funds?

With Bajaj Finance you can get loan against mutual funds starting at Rs. 10,000 up to Rs. 5 crore.

Corporates/ HUF/ LLP/ Partnership can apply for loan against mutual funds of up to Rs. 1000 crore, by reaching us at las.support@bajajfinserv.in

What are the steps involved in applying for a loan against mutual funds?

To apply for loan against mutual funds, click on ‘Apply’ at the top of the page. Mention your name, phone no., email ID, and the value of the lien marked funds.

Submit the form, and our representative will help you in the further processing of loan.

Are there any fees or charges associated with applying for a loan against mutual funds?

Yes, there may be fees or charges associated with applying for a loan against mutual funds.

Some of the common fees or charges associated with applying for a loan against mutual funds may include:

Processing fees: Financial institutions may charge a processing fee for the loan application.

Prepayment charges: If you decide to repay the loan before the end of the loan term, some lenders may charge a prepayment fee.

Interest rate: The lender may charge an interest rate on the loan. The interest rate may be fixed or floating and may depend on factors such as the loan amount, loan tenure, and creditworthiness of the borrower.

Click here to check the interest rate and processing charges of loan against mutual funds with Bajaj Finance.

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Disclaimer

* Subject to sole discretion of Bajaj Finance Limited and regulatory guidelines.