Frequently asked questions
The loan against mutual funds facility available through the Bajaj Finserv app is only applicable for individuals, for loans up to Rs. 5 crore. We also provide offline loans against mutual funds up to Rs. 1000 crore 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. ("BFL"sole )'s discretion. For further information on using this service, please contact us at firstname.lastname@example.org.
You can avail of a loan against mutual funds by lien marking the 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.
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.
For sanctioning loans against mutual funds, we have 5000 + approved schemes, units of which are acceptable to BFL. The list of approved securities may be modified by BFL from time to time as per the internal policies and procedures of BFL.
For any assistance with regard to a loan against securities you can write to us at email@example.com.
Yes, it is possible. You may make a part-prepayment or foreclose the entire loan before the end of the tenure.
You can view the list of securities pledged by you to BFL by viewing the IVR (Interim Valuation Report) available under View Statements in the LAS service section.
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 fund falls, the pre-assigned loan limit will reduce proportionally. This would be subject to “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 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 securities is generated on the 7th of every month.
All AMCs registered with CAMS (Computer Age Management Services) and K-Fin Technology (Registrar) can be pledged to avail of a loan against mutual funds.
Opening a loan against mutual funds account through the Bajaj Finserv App 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
- Share your holding statement at Las.firstname.lastname@example.org
- Lien letter shall be prepared by us on the free units & sent back to via mail along with Bajaj Covering letter for your attestation
- Shares the docs back with us at Las.email@example.com & your lien request letter will then further be submitted to the AMC
- AMC will review and lien mark post verification
*Final loan amount shall be calculated basis of the units & price of eﬀective lien marked mutual funds.
Post successful execution of agreement and additional documents as required by BFL, and lien marking of mutual funds, the loan amount will be disbursed to your registered bank account within minimal time.
90% LTV is always required to be maintained for loan against funds facility. LTV is subject to changes on account of Regulatory Changes. Any shortfall in the maintenance of the 90% LTV occurring on account of movement in the fund prices shall be made good 7 business days.
Further, in case the Loan to Value falls more than 85% then BFL will go ahead with the liquidation of mutual funds with an intimation to the Borrower.
You can repay the shortfall or mark lien on additional mutual funds to make the shortfall good.
In case you fail to fulfil the shortfall within 7 business days, Bajaj Finance Limited holds the right to sell the lien marked mutual funds to make good the shortfall.
You can release securities, provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within minimal time post-verification.
To avail loan against mutual fund, an individual should be between 18 to 90 years of age.
Loan against mutual funds with Bajaj Finance is available to customers at an interest rate of up to 20% p.a.
The fees and charges associated with a loan against mutual funds may vary depending on the lender and the terms of the loan agreement. Here are some potential fees and charges that you may encounter:
a. Interest rate: The lender may charge an interest rate on the loan amount, which can vary based on the loan amount, repayment period, and other factors.
b. Processing fee: The lender may charge a processing fee for the loan, which is usually a percentage of the loan amount.
c. Part-prepayment penalty: Some lenders may charge a part-prepayment penalty if you choose to repay the loan before the end of the loan term.
d. Late payment fee: If you miss a loan repayment, the lender may charge a late payment fee.
e. Stamp duty: In some cases, a stamp duty may be charged on the loan agreement.
It's important to read the loan agreement carefully and understand the fees and charges associated with the loan before signing up for it.
There are Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment. foreclosure charges and 4.72% pre-payment penalties if you get loan against mutual funds with Bajaj Finance.
Yes, there is a processing fee up to 4.72% of the loan amount (inclusive of applicable taxes), when applying for a loan against mutual funds. This fee covers the costs associated with processing your loan application. It is important to carefully review the terms and conditions of the loan agreement to understand all fees and charges associated with the loan.
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 firstname.lastname@example.org
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.
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.
The eligibility criteria to apply for a loan against mutual funds are:
a. Securities: You should have a minimum share of Rs. 10,000.
b. Ownership: You should be the owner of the securities and have clear and marketable title to them.
c. Age: You should fall under the age bracket of 18 to 90 years.
d. Type of mutual funds: Your funds should be under the approved list of 5000 + funds.
Some of the documents required to apply for loan against mutual funds are:
For KYC verification you need either of these documents: Aadhaar, passport or voter’s ID.
Along with this you need to provide a copy of the mutual fund statement, which shows the value of your mutual fund holdings.
A loan against a mutual fund works by allowing investors to borrow money against the value of their mutual fund holdings. This type of loan is also known as a "loan against mutual funds" or "margin funding."
To obtain a loan against a mutual fund, investors must pledge their mutual fund units as collateral with the lender. The lender will then lend a certain percentage of the value of the mutual fund units, which can typically range from 50% to 80%. The loan amount and interest rate will vary depending on the mutual fund and the lender.
The loan can be used for any purpose, such as for personal or business expenses, or for investing in other securities. The borrower will be required to pay interest on the loan amount, typically at a higher rate than the mutual fund's returns. The borrower will also be required to repay the loan within a specified period, which can range from a few months to a few years.
If the borrower is unable to repay the loan, the lender may sell the pledged mutual fund units to recover the loan amount. Therefore, investors must carefully consider the risks involved before opting for a loan against a mutual fund.
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.
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.
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 instalments 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.
We have formed partnerships with the following registered agents.
- NJ Capital Private Limited
- Prudent Corporate Advisory Services Limited
- Smallcase Technologies Private Limited
- Salter Technologies Private Limited
- Fifty Fintech Private Limited