FAQs: Top up on Loan Against Mutual Funds on smallcase
In case you do not find your question here or want more information, you can reach out to us at help@smallcase.com or chat with our support team on the smallcase app.
Q.1 What is top-up?
A top-up allows you to increase the loan amount on your existing loan against mutual funds by pledging additional mutual fund units. The minimum top-up amount is ₹25,000.
Q.2 What’s the process of top-up?
To top up your loan, simply tap the ‘Top Up’ button below your loan card on the dashboard. Your existing details will be pre-filled, allowing you to easily import your updated holdings. After reviewing and confirming the top-up amount, you can set up a new e-mandate, pledge additional funds, and sign the agreement.
Q.3 What are the charges for top-up?
A minimal processing fee is charged only on your total top-up amount.
|
Loan Amount |
Total Fees |
|
Under ₹1 lakh |
₹999 + 18% GST |
|
Between ₹1 to ₹5 lakh |
1% of loan amount + 18% GST |
|
More than ₹5 lakh |
₹4,999 + 18% GST |
Q.4 How will my interest payment change with a top-up?
After the top-up, your EMI will be based on the new total loan amount (original loan plus the top-up). While your EMI will increase to cover the larger outstanding loan, the interest rate remains the same.
For example, if your original cash withdrawn was ₹1 lakh with a 10.75% p.a. interest rate, your monthly interest payment was ₹896. With a top-up of ₹50,000, your total loan becomes ₹1.5 lakh, and your new monthly interest payment will be ₹1,343 (calculated as 10.75%/12 x ₹1.5 lakh).
Q.5 Will my loan tenure change if I top-up the loan?
When you top-up your loan, the tenure is extended to 3 years from the date of the top-up application, before the loan matures. This gives you more time to either repay or renew your loan.
Q.6 Is there a limit to how many times I can top-up my loan?
No, there is no limit on the number of times you can top-up your loan, as long as you have eligible mutual funds to pledge. Please note a processing fee is applicable for every top up.
Top up your loan
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