Frequently asked questions
You can avail a loan against security by providing any of the following securities:
- Shares
- Mutual funds
- Insurance policy
- Bonds
*Only Bajaj Allianz, ICICI Prudential Life Insurance, Max Life & TATA AIA Unit Linked Insurance Policies are accepted.
**Loan against bonds and insurance policies are not available through the Bajaj Finserv App. Send us your requirement at las.support@bajajfinserv.in for further details.
To avail loan against securities, an individual should be between 18 to 90 years.
The loan to value currently offered against securities are as follows:
For shares: up to 50%
For mutual funds: up to 90%
For bonds: up to 95%
Please note that the above are subject to change depending upon the applicable regulations and internal policies of BFL.
The tenure of the loan is 7 days to 36 months. Any renewal of the loan/ facility shall be at the sole discretion of BFL.
Interest on loan against securities facility is payable on a monthly basis.
No. The interest is charged only on the loan amount that you have drawn down or outstanding loan amount.
The interest cycle is calculated from 7th day of each calendar month to the 6th day of succeeding month. Interest due towards loan against securities is generated on the 7th of every month.
LTV is loan to value ratio. This is the ratio of the loan amount outstanding to the value of pledged securities. A minimum of 50% LTV is always required to be maintained for loan against shares facility.
Your EMI depends on the loan amount, tenure, interest rate, and the type of mutual funds pledged. A longer tenure reduces EMI, while a higher interest rate or loan amount increases it.
Yes, you can prepay your loan against mutual funds either partially or fully. Prepayment terms may vary by lender, and some may charge a nominal fee depending on the loan agreement.
No, using an online EMI calculator is completely free. It helps you estimate your monthly outgo based on different loan amounts, tenures, and interest rates, allowing better financial planning.
Loan amounts generally start from Rs. 25,000 and can go up to Rs. 1000 crores, depending on the mutual fund's value and the lender's policies. The Loan-to-Value (LTV) ratio also impacts your borrowing limit.
Your EMI is influenced by the loan amount, interest rate, tenure, and repayment frequency. A longer tenure may lower your monthly EMI, but increase total interest paid. The type of mutual funds pledged can also affect interest rates, impacting EMI.
Yes, you can prepay your loan against mutual funds, either partially or in full, before the end of the tenure. Some lenders may offer this facility with zero or minimal prepayment charges, helping you save on interest and close the loan faster.
No, EMI calculators available on most lender websites are completely free to use. They help you estimate your monthly payments quickly by adjusting the loan amount, interest rate, and tenure, so you can plan your finances better before applying.
The loan amount typically ranges from Rs. 10,000 to Rs. 5 crore, depending on the lender and the value of your pledged mutual fund units. Equity funds usually offer higher loan-to-value ratios compared to debt funds, affecting how much you can borrow.
