Loan Against Mutual Funds

Leverage Your Portfolio While Staying Invested

A Loan Against Mutual Funds is an Overdraft facility where your mutual fund units are pledged as collateral to borrow funds. With this facility, instead of redeeming your investments, you can access funds immediately while continuing to stay invested and generate potential return. With a fully digital process and flexible repayment options, this secured loan facility helps you meet short-term financial requirements efficiently without disturbing long-term financial goals.

Key Features and Benefits

Attractive Interest Rates

Zero Paperwork

100% Digital Process

Retain Fund Ownership

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Enjoy the following features by availing SIB Digital Loan Against Mutual Funds scheme:

Overdraft Facility - Access funds as needed within the approved limit and pay interest only on the utilised amount.
100% Digital - Zero Paperwork
Higher Loan Amount - Loans from Rs. 50,000/- to Rs. 1.00 Crore per Resident Individual.
No CIBIL Check - Loan eligibility is based on the value of pledged mutual funds
Zero Prepayment & Pre-closure Charges - Repay early without any additional cost.
Personal Use - Funds can be used to meet personal financial needs.
Higher Portfolio Leverage - Get 60% loan against equity Mutual Funds and 70% on debt Mutual funds across all AMCs.
Access funds without redeeming investments - Meet liquidity needs while staying invested in mutual funds.
Lower interest rates - Being a secured loan, interest rates are typically lower compared to unsecured loans.
Fast & digital process - End-to-end digital journey with minimal documentation.
Overdraft facility - Withdraw funds as needed within the approved limit. (Tenure - 3 Years)
Wealth continuity - Your mutual fund investments continue to grow during the loan tenure.

Here are the eligibility crietria to avail a Loan Aganist Mutual Funds:

Age Crieteria - Minimum age-18 Years, Maximum Age - 75 Years
Resident Indian individual
Must hold eligible mutual fund units
Mutual funds should be approved by the lending platform
KYC-compliant investor (PAN & Aadhaar mandatory)
Valid bank account linked for mandate setup

Loan amount is sanctioned as a percentage of the current value of pledged mutual fund units.

Here is how you can secure a Loan Against Mutual Funds in your account:

Sign up
Complete KYC verification using your PAN & Aadhaar details
Verify your bank account and set up E-mandate
Pledge/Lien mark your funds at CAMS & KFINTECH RTAs
Digitally sign the loan agreement with OTP authentication
Overdraft or Immediate disbursement to linked bank account
Loan will be disbursed within the same day

The following charge is applicable for Loan Against Mutual Funds:

Processing Fee – 1% of the Loan Amount (Minimum Rs.1250/- + GST- Maximum capped at Rs.4999/- + GST)

The following documents are required to sanction the Loan Against Mutual Funds:

Aadhaar Card
PAN Card

Loan Service Provider	M/s Essential Investment Managers Pvt Ltd
Contact & Other related details	Product offerings: Loan Against Mutual Funds Registered address: No. 51, 3rd Floor, Le Parc Richmonde Richmond Road, Shantala Nagar, Bangalore, Karnataka, India, 560025
Email ID	[email protected]
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