LAMF | Learn more about pledging checks
Getting a loan against your mutual funds should be straightforward. But sometimes you might notice your loan amount is lower than expected, or some of your funds aren’t available for pledging. Here’s why this happens and what you can do about it.
Why some of your Mutual Funds may not be available for pledging
There are a few technical checks that happen in the background when we connect with your mutual fund repositories (like CAMS or KFintech) to verify if a fund is pledgeable. Sometimes, one or more funds may fail these checks – which is why you might see a reduced loan amount at the pledging step.
Common reasons
If any of these checks fail, the fund gets disqualified – either temporarily or permanently. Some common reasons include:
| Issue | What it means | What can you do |
| Zero units or Low balance | The folio doesn’t have enough free units that can be pledged | Ensure sufficient units are available in the folio that can be pledged |
| Minor or invalid folio | Some folios are not valid for lien marking – this includes minor accounts or folios not having “Individual” status | – |
| FATCA not verified | You must provide FATCA declaration for your folios on RTAs | Update your FATCA details with your AMC or RTA. FATCA can be completed online via CAMS and KFin as well. |
| KYC not verified | Your KYC with the RTA might be incomplete or not updated | Update your KYC details with your AMC or RTA |
| NRI restrictions | Certain schemes don’t allow lien marking if you are an NRI; moreover lender does not provide loan to NRI users | – |
| Scheme not supported | Some mutual funds are simply not supported for pledging with your mutual fund provider due to AMC/RTA restrictions | Contact our support team to understand this better |
What we’re doing about it
- We deselect folios where we received errors from your mutual fund provider and let you choose to continue your loan journey with eligible ones
- You’ll also see a clear breakdown of the unavailable mutual funds and how they impact your total loan amount
- Your eligible loan amount is then recalculated based on what can be pledged. If the revised amount is ₹25,000 or more, you can proceed without any interruptions
Need more help?
If your loan amount is still too low after fixing these issues, or if you’re not sure how to update your KYC/FATCA, our support team is here to help. Contact us at support@smallcase.com
We’re continuously working to make the loan process smoother for you.
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