Loan Against Mutual Funds Features and Benefits

Read on to know why our loan against mutual funds is the best option for you.

Features and benefits of our loan against mutual funds

00:27

Features and benefits of a Bajaj Finserv Loan Against Mutual Funds

Watch this video to get a quick view of the salient features of our Loan Against Mutual Funds

  • Pre-assigned loan limit

    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

  • Approved funds

    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.

  • Interest on withdrawn amount

    Interest on withdrawn amount

    The interest is charged only on the amount you have withdrawn from your pre-assigned loan amount.

  • No sell-off mutual funds

    No sell-off mutual funds

    No need to sell your mutual funds. Get funds at attractive rates while continuously earning returns on your funds.

  • Tenure

    Tenure of up to 36 months

    Convenient tenure and repayment options starting from 7 days to 36 months.

  • Loan limit based on fund type

    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.

  • Pre-approved offers for new customers

    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.

  • Dedicated customer portal (My Account)

    Dedicated customer portal (My Account)

    Download your loan statement, release funds and manage your loan online with our customer portal- My Account.

  • Extra credit for increased share value

    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.

  • With this loan, you have the best of both worlds: your mutual fund portfolio is protected and keeps making returns while the loan takes care of your urgent financial requirements.

    Through our Loan Against Mutual Funds option, you may now take advantage of paperless and immediate liquidity against your mutual funds. In just few steps, you can use this facility by placing a lien on the mutual funds managed by asset management companies registered with Computer Age Management Solutions Private Limited ("CAMS") and Kfintech.

Show More Show Less

How to apply for a loan against mutual funds

Video Image 00:49
   

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

Frequently asked questions

What are the features of loan against mutual funds?

Loan against mutual funds is a type of loan facility provided by banks and financial institutions in which investors can pledge their mutual fund units as collateral to secure a loan. The following are some of the features of loan against mutual funds:

Loan amount: The loan amount is determined based on the value of the mutual fund units pledged as collateral. Typically, the loan amount can range from 50% to 70% of the value of the pledged units.

Interest rate: The interest rate on a loan against mutual funds is usually lower than that of an unsecured loan because the mutual fund units serve as collateral. The interest rate can vary from lender to lender.

Risks: In case the borrower defaults on the loan, the lender has the right to sell the mutual fund units to recover the outstanding loan amount.

Flexibility: Borrowers can continue to hold their mutual fund units and benefit from any capital appreciation or dividends while also using them as collateral for a loan.

It is important to carefully evaluate the terms and conditions of a loan against mutual funds before availing of it to ensure that it suits your financial needs and goals.

What funds can be lien marked for a loan against mutual funds?

Bajaj Finance has a wide range over 5000 funds, which the customer can lien mark to get loan against mutual funds. Click here to check the approved list of funds.

What are the benefits of a loan against mutual funds?

A loan against mutual funds allows individuals to borrow funds against their mutual fund units without having to sell them. Here are some benefits of taking a loan against mutual funds:

No need to liquidate assets: The biggest advantage of a loan against mutual funds is that you can obtain funds without selling your investments. This means you don't have to worry about market volatility or the tax implications of selling your mutual funds.

Lower Interest Rates: As the loan is secured by mutual fund units, the interest rates are usually lower than those of unsecured personal loans.

Flexible Repayment Options: Borrowers have the flexibility to choose their repayment schedule, and the loan can be repaid in installments or as a lump sum.

No Restrictions on Usage: There are no restrictions on the usage of the funds obtained from a loan against mutual funds. You can use the funds for any purpose, including business expansion, education, home renovation, or debt consolidation.

Overall, a loan against mutual funds is a good option for individuals who need funds for short-term requirements and want to avoid the hassle of selling their mutual fund units.

Show More Show Less

Disclaimer

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