Loan Against Mutual Funds – Credit limit overutilised
Your credit limit has been overutilised due to a drop in the value of your pledged mutual funds. Act now to protect your investments and avoid fund liquidation.
What does this mean?
- The amount you’ve withdrawn is now higher than your available credit limit.
- The lender may recover the excess by selling your pledged mutual funds.
Why has this happened?
- The market value of your pledged mutual funds has dropped.
- Your credit limit has been reduced automatically as per the lender’s risk policy.
What should you do?
- Repay the excess amount immediately – visit your credit dashboard on the smallcase for the repayment process & bank details.
- Timely repayment prevents fund liquidation and protects your investments.
What if you don’t pay?
The lender will sell your pledged mutual funds to recover the shortfall, impacting your portfolio’s value and returns.
Next Steps:
Conclusion:
Your credit limit was overutilised due to market changes, but a quick repayment can prevent fund liquidation and protect your investments. Stay on top of your loan account to avoid disruptions
Don’t let market swings affect your investments. Act today.
You may want to read
Find answers to all your queries on loans against mutual funds, including eligibility, process, and benefits. Learn how to access funds without selling your investments.
