Loan Against Mutual Funds

The tenure of the loan is to 36 months. Any renewal of the loan/facility shall be at the sole discretion of BFL.

For any assistance with regard to a loan against mutual funds, 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.

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 the fund falls, the pre-assigned loan limit will reduce proportionally. This would be subject to the “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 that 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 mutual funds is generated on the 7th of every month.

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

1. Share your holding statement at Las.support@bajajfinserv.in

2. Lien letter shall be prepared by us on the free units & sent back to via mail along with a Bajaj Covering letter for your attestation

3. Shares the docs back with us at Las.support@bajajfinserv.in & your lien request letter will then be further submitted to the AMC

4. AMC will review and lien mark post verification

*Final loan amount shall be calculated basis the units & price of the effective lien marked mutual funds.

Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.

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.

Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.

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 mutual funds is generated on the 7th of every month.

You can avail of a loan against mutual funds by lien marking from a wide range of 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.

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

Most equity, debt, and hybrid mutual funds with good liquidity are eligible for a loan. Funds with high volatility, sector-specific exposure, close-ended schemes, ELSS, and funds nearing maturity are generally not eligible.

LTV is calculated as a percentage of the current market value (NAV) of pledged mutual fund units. The exact LTV depends on fund type, risk profile, and lender policies, and is usually lower for equity funds than debt funds.

If the value of pledged mutual funds falls and breaches the required margin, a shortfall occurs. The lender may ask you to top up funds, pledge additional units, or partially repay the loan to restore the LTV.

Yes, most loans against mutual funds allow part-prepayment or full foreclosure. Many lenders offer this flexibility with minimal or no prepayment charges, helping borrowers reduce interest costs when surplus funds are available.

It is usually charged on a daily basis and debited monthly, making it cost-efficient if you withdraw and repay funds intermittently.

Once the outstanding loan and applicable charges are fully repaid, the lender issues a lien release request. The mutual fund units are then unpledged through the depository, restoring full ownership to the investor.

Loan against mutual funds typically comes with a one-year tenure, structured as an overdraft. The facility can be renewed annually, subject to fund valuation, account performance, and lender review.