Loan Against SBI Mutual Funds on smallcase
SBI has been a trusted choice for mutual fund investors for years now. However, selling your mutual fund investments to secure funds might not seem feasible or comfortable for many. It is now possible for SBI mutual fund investors to get a loan against their SBI mutual funds at smallcase, and it’s an absolute cakewalk! Let’s get into it.
Loan Against SBI Mutual Funds on smallcase
Splitting your investments halts the power of compounding. Don’t sacrifice long-term wealth for short-term gains. Utilise your investments as collateral for a loan, maintaining their growth while meeting immediate financial needs. You can consider smallcase for availing a loan against your SBI mutual funds.
Unlocking a mutual fund loan through smallcase is effortless. Individuals aged 18-70, whether self-employed or salaried residents of India or non-residents, can apply for loans up to ₹5 Crore against approved Mutual Funds held with CAMS & KFintech.
How to Get Loan Against SBI Mutual Funds Without Selling Your MF Investments?
You can use your mutual fund investments to establish an emergency credit line swiftly without selling your holdings. Access emergency cash in under 2 working hours on smallcase by using your mutual fund holdings as collateral at the interest rate of 10.75% per annum.
Securing a Loan Against Mutual Funds (LAMF) smallcase is a straightforward process, just follow the steps below:
- Download the smallcase app
- Import your mutual fund holdings into smallcase
- smallcase will then check your mutual fund holdings and display the maximum eligible loan against mutual funds SBI amount
- Proceed to confirm your loan amount. Note: you can choose to take only a part of the max eligible amount (and not necessarily the entire amount)
- Enter your bank account details
- The money should be credited to your bank account in less than 2 working hours.
- In case it takes longer, you can always reach out to the smallcase support team at help@smallcase.com
Loan Against Mutual Funds (LAMF) offers various benefits tailored to specific financial needs. Explore its potential to achieve your financial goals and ensure a prosperous future.
What is Loan Against Mutual Funds (LAMF)?
Just like you can use various assets like gold or property as collateral for a loan, Mutual Funds (MFs) can also serve as collateral. At smallcase, you can secure a loan against your MFs at a competitive interest rate of 10.75% per annum.
You can easily lien mark your mutual funds digitally with smallcase to instantly access a loan, eliminating the need to sell or redeem your investments. This loan, provided as an overdraft facility, offers flexibility in fund access and repayment without extra fees. Loan against mutual funds interest rate in SBI is charged only on the utilised amount and its duration.
Choose from various approved SBI mutual funds offered by various asset management companies in India as collateral. CAMS and KFintech (formerly KARVY) serve as reliable Registrars & Transfer Agents (RTAs) to secure the loan against your MFs. For those seeking short or medium-term financial solutions by pledging their SBI MFs, exploring the smallcase SBI loan against MFs can be a prudent option.
List of Approved Schemes for SBI Loan Against Mutual Funds
Following are the list of approved schemes for SBI loan against mutual funds:
Equity / Growth Funds
- SBI Flexicap Fund
- SBI Focused Equity Fund
- SBI Large & Midcap Fund
- SBI Bluechip Fund
- SBI Magnum Midcap Fund
- SBI Multicap Fund
- SBI Contra Fund
- SBI Small Cap Fund
Sectoral Funds
- SBI Banking & Financial Services Fund
- SBI Healthcare Opportunities Fund
- SBI Infrastructure Fund
- SBI Magnum COMMA Fund
- SBI PSU Fund
- SBI Technology Opportunities Fund
Thematic Funds
- SBI Consumption Opportunities Fund
- SBI Equity Minimum Variance Fund
- SBI Magnum Equity ESG Fund
- SBI Magnum Global Fund
ELSS Funds (After the end of the lock in period)
- SBI Long Term Equity Fund
- SBI Tax Advantage Fund – Series 3
- SBI Long Term Advantage Fund – Series I
- SBI Long Term Advantage Fund – Series II
- SBI Long Term Advantage Fund – Series III
- SBI Long Term Advantage Fund – Series IV
- SBI Long Term Advantage Fund – Series V
- SBI Long Term Advantage Fund – Series VI
Index Funds
- SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund
- SBI Nifty Index Fund
- SBI Nifty Next 50 Index Fund
Hybrid Funds
- SBI Conservative Hybrid Fund
- SBI Balanced Advantage Fund
- SBI Equity Savings Fund
- SBI Multi Asset Allocation Fund
- SBI Equity Hybrid Fund
- SBI Magnum Children’s Benefit Fund – Investment Plan
- SBI Magnum Children’s Benefit Fund – Savings Plan
- SBI Retirement Benefit Fund – Aggressive Hybrid Plan
- SBI Retirement Benefit Fund – Aggressive Plan
- SBI Retirement Benefit Fund -Conservative Hybrid Plan
- SBI Retirement Benefit Fund -Conservative Plan
Exchange Traded Funds
- SBI ETF 10-year Gilt
- SBI ETF BSE 100
- SBI ETF Consumption
- SBI ETF IT
- SBI ETF Nifty 50
- SBI ETF Nifty Bank
- SBI ETF Nifty Next 50
- SBI ETF Private Bank
- SBI ETF Quality
- SBI ETF Sensex
- SBI ETF Sensex Next 50
Debt Schemes
- SBI Magnum Gilt Fund
- SBI Magnum Constant Maturity Fund
- SBI Liquid Fund
- SBI Magnum Low Duration Fund
- SBI Magnum Medium Duration Fund
- SBI Magnum Income Fund
- SBI Savings Fund
- SBI Overnight Fund
- SBI Short Term Debt Fund
- SBI Magnum Ultra Short Duration Fund
- SBI Banking and PSU Fund
- SBI Corporate Bond Fund
- SBI Credit Risk Fund
- SBI Dynamic Bond Fund
- SBI Floating Rate Debt Fund
Disclaimer: This article is for informational purposes only. Please note that the info is updated as on 11 April, 2024. For the latest info, please refer to SBI’s official resources.
Documents Required to Avail Loan Against SBI Mutual Funds on smallcase
You can simply use our fully digital and paperless process to apply for an SBI loan against mutual funds using the smallcase app. You’ll require:
- PAN information
- The phone number/email address associated with your mutual funds
- Some users may also need to provide their Aadhar card for verification
- Bank details may be required to facilitate the transfer of funds
- Finally, the online loan agreement needs to be digitally e-signed to finalise the loan against your SBI mutual funds.
Upon approval, the money should reach your bank account in 2 working hours. In case of any delays, you can contact our support team at help@smallcase.com.
Will the SBI Mutual Funds Still Generate Returns After Being Pledged?
Yes. While you can still earn returns on your SBI mutual fund investments after pledging them for a loan on smallcase, you cannot sell or redeem your SBI mutual funds until the loan is repaid.
Can You Sell Your SBI Mutual Funds After Taking Loan Against Them?
No. You can continue generating returns but not sell/redeem your SBI mutual funds after pledging them at smallcase.
What Happens in the Case of Active SIPs or Invest More (Lumpsum Investments) in Pledged SBI Mutual Fund?
Additional investments in pledged mutual funds, whether lump sum or through SIP orders, will not be impacted. These investments do not automatically become pledged, allowing the unit holder full control over them.
Furthermore, when you pledge funds at smallcase for loans, you temporarily halt or cancel any Active System Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) that you might have started.
Maximum Loan Limit on Your SBI Loan Against Mutual Funds
Your credit limit is the highest amount you can borrow by leveraging your eligible mutual funds. The borrowing amount is determined by applying a percentage to the value of the mutual funds you wish to use as collateral. Equity mutual funds have a borrowing percentage of 45%, while debt mutual funds have a borrowing percentage of 75%. The minimum loan amount available against mutual funds at smallcase is ₹25K, while the upper limits are set at ₹5 Cr.
Terms of Loan Closure, Charges & Interest
Once you’ve repaid the principal and any accrued interest for the month, you can close the SBI loan against mutual funds SBI Bank without extra charges. After repayment, you can maintain the credit limit and access funds as needed, with loan against mutual fund SBI rate of interest applied only on withdrawals. Additionally, upon loan closure, you can release the collateralised MFs, enabling you to redeem or sell these investments.
Here’s a table of other fees, charges & interest rates that you might want to check out if you are considering availing your loans against mutual funds SBI on smallcase:
| Fees & Charges | Details |
| Processing Fee | ₹999 or 1% of loan amount, whichever is higher, up to a maximum of ₹4999 (plus GST) |
| Late Payment Interest | Penal Interest: 2% per month |
| Bounce Charges | ₹1200 per bounce |
| Loan Top-Up Charges | None |
| Part-Prepayment Charges | None |
| Foreclosure Charges | None |
| Mandate Inactive Charges | None |
| Mandate Verification | Charged by your bank (typically between ₹0 to ₹150) |
| Lien Removal Charges | If requested after taking loan: None If loan is canceled before disbursement: Actual processing fee applicable |
| Collection/Legal Charges | In case of default: Actuals |
Note: This information was updated on April 18th. For the latest updates on interest rates, fees, and charges, visit the smallcase help centre for LAMF.
To Wrap It Up…
In conclusion, understanding the options available for obtaining a loan against SBI mutual funds can be a valuable financial strategy for individuals seeking liquidity without liquidating their investments. With specific maximum loan amounts allocated based on the type of mutual funds held, borrowers can make informed decisions aligned with their financial needs and goals.
Frequently Asked Questions (FAQs)
Yes, you can consider smallcase to check your mutual fund holdings and see your eligible loan against mutual fund SBI amount. You can also avail a loan against any of your mutual fund holdings at smallcase at just under 2 working hours!
Your credit limit equals the highest loan amount obtainable with your eligible mutual funds. The amount you can borrow is determined by applying a percentage to the value of your chosen mutual funds used as collateral. Equity mutual funds have a 45% lending percentage, while debt mutual funds have a 75% lending percentage, at smallcase!
The default tenure of the loan against SBI mutual funds at smallcase is 36 months. However, you can choose to close the loan early without any foreclosure charges. The loan tenure can also be extended beyond 36 months.
By availing a loan against your SBI mutual funds, you can utilise your investments as collateral for a loan, maintaining their growth while meeting immediate financial needs.
There are no lien removal charges if requested after taking out the loan against your SBI mutual funds.
The default tenure of the loan repayment against SBI mutual funds at smallcase is 36 months.
Yes, you can get loan against SBI’s approved Hybrid schemes.
Disclaimer: This article is for informational purposes only. Please note that the info is updated as on 11 April, 2024. For the latest info, please refer to SBI’s official resources.
