Interest rate and charges on Loan against Mutual Funds

We advise you to know the interest rates and processing charges in detail before applying for our loan against mutual funds.

Interest rate and charges

The following charges are applicable on loan against securities:

Types of fees

Charges applicable

Interest rate
Up to 20% per annum

Processing fee

Up to 4.72% of the loan amount (inclusive of applicable taxes).

Prepayment charges

Full prepayment - Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment

Part-prepayment - Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment

Annual maintenance charges/ renewal fee

Up to 1.18% (inclusive of applicable taxes) on the sanctioned amount

Bounce charges

In case of default of repayment instrument, Rs. 1,200/- per bounce will be levied.

Penal interest

Delay in payment of monthly instalment shall attract penal interest up to 36% per annum applicable on the monthly instalment outstanding, from the respective due date until the date of receipt of monthly instalment.

Stamp duty (as per respective state)

Payable as per state laws

Brokerage charges*

As applicable at actuals

DP charges**

As applicable at actuals

Pledge confirmation charges**

As applicable at actuals

Pledge invocation charges**

As applicable at actuals

Demat share transfer charges (post invocation)**

As applicable at actuals
Legal charges As applicable at actuals

*Charges levied by Broker to BFL and the same is being passed on to the clients

**Charges levied by NSDL/ CDSL to BFL and the same is being passed on to the clients

How to apply for a loan against mutual funds

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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 is the interest rate for loan against mutual fund?

Loan against mutual funds with Bajaj Finance is available to customers at an interest rate of up to 24% p.a.

What are the fees and charges associated with a loan against mutual funds?

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.

Are there any part-prepayment charges or foreclosure charges associated with a loan against mutual funds?

There is a full prepayment charge up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment and there is part-prepayment charge up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment.

Is there an origination fee or processing fee charged when applying for a loan against mutual funds?

 Yes, there is a processing fee of 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.

How can I calculate interest on loan against mutual funds?

The rate of interest for loan against mutual funds may vary from lender to lender. Ensure you check for precise terms and conditions before borrowing. Bajaj Finance offers loan against mutual funds at an interest rate of up to 20% per annum.

What is the loan to value for mutual funds finance?

The loan-to-value (LTV) ratio for a loan against mutual funds with Bajaj Finance is up to 90%. The actual LTV ratio may vary depending on the lender and the specific terms and conditions of the loan.

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Disclaimer

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