How to apply for a Loan Against Mutual Funds?
How to Apply for Loan Against Mutual Funds
Enter basic details
Fill in essential information such as your name, PAN, and date of birth to begin the application.
Verify contact details
Confirm your registered email ID and mobile number through OTP authentication to proceed securely.
Fetch mutual fund portfolio
Your mutual fund holdings are securely fetched through CAMS and KFintech, allowing you to view eligible schemes instantly.
Select funds for pledge
Choose the mutual funds and specific units you wish to mark for lien as collateral for the loan.
Review loan offer
Check the loan amount offered based on the selected funds, applicable margin, and your overall eligibility.
Complete lien marking
Approve the lien marking request digitally using an OTP sent to your registered mobile number. The selected units are marked in favour of the lender while you continue to remain the investor.
Finish KYC and bank verification with E-Mandate
Complete your KYC process and verify your bank account details. Set up an E-Mandate to enable smooth repayment of interest and dues. Once verified, the sanction letter is generated.
Accept loan agreement and key documents
Digitally review and accept the Application Form, Key Fact Statement (KFS), Sanction Letter, and Loan Agreement. Provide your consent to the final loan terms online.
Get funds credited
After successful verification and acceptance, the approved loan amount is credited directly to your registered bank account.
*Estimated completion time is ideal condition.
Features and benefits
Read on to know why you should opt for our loan against mutual funds.
Features and benefits of LAMF
-
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 ₹50 Cr
-
5000+ approved funds
With over 5000+ funds from 40+ AMCs, get a loan against mutual funds with just 3 documents. The loan amount will vary based on the fund type.
-
Interest on withdrawn amount
The loan against mutual funds interest rate is charged only on the amount that you have withdrawn from your pre-assigned loan against mutual funds.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 of up to 36 months
Convenient tenure and repayment options starting from 7 days to 36 months(loan will be matured on the end of the month).
-
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.
-
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 fund 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.
-
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.
Eligibility criteria and documents required for loan against mutual funds
Anyone can apply for a 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 and Documents Required for Bajaj Finance Loan Against Mutual Funds
Eligibility criteria
Nationality | Indian |
Age | 21 to 90 years |
Employment | Salaried, self-employed |
Portfolio value | Minimum ₹50,000 |
Documents required
- PAN card
- KYC documents: Aadhaar/ passport/ voter’s IDConsolidated Account Statement
Applicable fees and charges for loan against mutual funds
Frequently Asked Questions
Overview
EMI
Repayment
Eligibility
I am looking to apply for a loan against mutual funds. How do I avail it from Bajaj Finance Limited?
The loan against mutual funds facility available through the Bajaj Finance platform is only applicable for salaried and self-employed customers.
We also provide offline loans against mutual funds up to ₹1000 Cr 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.’s (BFL) sole discretion. For further information on using this service, please contact us at las.support@bajajfinserv.in.
Which funds are accepted under a loan against mutual funds?
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.
What is the loan-to-value offered against the mutual funds provided?
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.
What is the tenure of a 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.
Whom can I contact in case I need any assistance?
For any assistance with regard to a loan against mutual funds, you can write to us at las.support@bajajfinserv.in.
Is it possible to make a part prepayment/foreclosure before the end of the loan tenure?
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.
I need more funds against the mutual funds already lien marked. How can I raise a request for additional disbursement?
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.
How frequently does the price of my mutual fund scheme get updated in the Bajaj Finance app / BFL portal?
For mutual fund schemes, it is updated at the end of every day.
What is the process of marking lien on mutual funds?
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 a Bajaj Covering letter for your attestation
Shares the docs back with us at Las.support@bajajfinserv.in & your lien request letter will then be further submitted to the AMC
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.
Is it possible to make a part prepayment/foreclosure before the end of the loan tenure?
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.
What is the frequency of interest payments?
Interest on a loan against mutual funds facility is payable monthly.
Is my interest applicable to the entire loan limit?
No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.
Is it possible to make a part prepayment/foreclosure before the end of the loan tenure?
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.
What is the frequency of interest payments?
Interest on a loan against mutual funds facility is payable monthly.
Is my interest applicable to the entire loan limit?
No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.
What is the interest payment cycle for a loan against mutual funds?
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.
If I repay my loan amount after 6 PM, when will it be adjusted in my loan account?
If you repay your loan amount after 6 PM, the repayment will be adjusted in the loan account on the next business day. Payments made before 6 pm on any business day, the same will be adjusted in the loan account, on same day.
Example: If you make a repayment at 7 PM on a Tuesday, it will be adjusted in your account on Wednesday be adjusted on Monday (assuming Wednesday is a business day).
What happens if I make a payment after 3 PM on the last business day of the month?
If you make a payment after 3 PM on the last business day of the month, the repayment will be adjusted in your loan account on the next business day. This is to ensure that end-of-month processing is completed smoothly.
Example: If the last business day of the month is Friday and you make a payment at 4 PM, the repayment will be adjusted on Monday (assuming Monday is a business day).
Which funds are accepted under a loan against mutual funds?
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.
What is the loan-to-value offered against the mutual funds provided?
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.
What documents are required for opening a loan against mutual funds account?
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
What types of mutual funds are eligible/not eligible?
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.
How is loan-to-value (LTV) calculated?
LTV is calculated as a percentage of the current market value of your mutual fund holdings. The lender assigns different LTV ratios for equity and debt funds based on risk levels, price fluctuations, and fund category.
What happens in a shortfall?
If the mutual fund value drops and your pledged value no longer covers the loan, the lender may issue a margin call asking you to repay part of the loan or pledge additional units. If ignored, units may be sold.
Can I prepay or foreclose the loan early?
Yes, most lenders allow partial or full prepayment without penalties. You can repay before maturity, reducing interest costs. After full repayment, the lien or pledge placed on your mutual fund units is removed.
How is interest calculated and charged?
Interest is charged only on the amount you withdraw or utilise from the sanctioned limit. It accrues daily and is billed periodically, usually monthly. The rate varies based on fund category, risk, and lender policies.
How to remove lien/pledge after repayment?
Once you repay the outstanding amount and charges, the lender instructs the mutual fund registrar (like CAMS or KFintech) to remove the lien. After confirmation, your pledged units become fully accessible for redemption or switching.
What is the loan tenure and renewal process?
The tenure usually ranges from 7 days to 36 months, depending on lender policies. Most loans can be renewed annually by submitting updated documents and maintaining adequate fund value, subject to the lender’s approval.
What our customers say about us
Shweta Sharma
Reviewed on 22 Aug 2025
I found Bajaj Finance's loan against mutual funds very convenient. The flexible repayment options and low int...
adya tripathi
Reviewed on 22 Jul 2025
Bajaj Finance's loan against mutual funds helped me access funds quickly. The process was transparent, and their expert guidance was invaluable. Highly recommended for financial flexibility.
Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.