Loan Against Mutual Funds Axis Bank: Eligibility, Documents & How to Apply
Investors often turn to mutual funds to grow wealth over time. However, when faced with emergencies, many opt to sell their mutual fund holdings to cover unexpected expenses, jeopardising their long-term financial goals. Avoiding this compromise, Axis Bank, a well-established private sector bank with a vast network of approximately 4,000 branches nationwide, now offers loans against mutual funds on smallcase. These loans are accessible for equity and debt mutual funds and offer substantial amounts.
Loan Against Axis Bank Mutual Funds on smallcase
Splitting investments can hinder the compounding effect, jeopardising long-term wealth for short-term gains. You can leverage your investments to secure a loan, meeting immediate financial needs while ensuring their growth. Consider smallcase for accessing a loan against your Axis mutual funds.
Unlocking a mutual fund loan via smallcase is simple. Individuals aged 18-70, whether self-employed or salaried residents of India, can apply for loans up to ₹5 Crore against approved Mutual Funds held with CAMS & KFintech.
How to Get Loan Against Axis Bank Mutual Funds Without Selling Your MF Investments?
You can now quickly establish an emergency credit line without selling your mutual fund investments. Get access to emergency cash within 3 hours using your mutual fund holdings as collateral with smallcase, at a competitive interest rate of 10.75% per annum.
Securing a Loan Against Mutual Funds (LAMF) with smallcase is simple:
- Download the smallcase app.
- Import your mutual fund holdings.
- smallcase evaluates your holdings and shows the maximum eligible loan amount.
- Confirm your desired loan amount (you can opt for less than the maximum).
- Provide your bank account details.
- Receive funds in your account within 3 hours.
In case of any delays, contact smallcase support at help@smallcase.com
Loan Against Mutual Funds (LAMF) through smallcase offers tailored benefits to meet specific financial needs. Explore its potential for achieving your financial goals and securing a prosperous future
What is Loan Against Mutual Funds (LAMF)?
Mutual Funds, like other assets such as gold or property, can be used as collateral for a loan. At smallcase, you can secure a loan against your Mutual Funds at a competitive interest rate of 10.75% per annum. By digital lien marking your Mutual Funds with smallcase, you can instantly access a loan without needing to sell or redeem your investments. This loan, provided as an overdraft facility, offers flexibility in fund access and repayment without additional fees.
Interest on the loan against Mutual Funds in Axis Bank is charged only on the utilised amount and its duration. Choose from various approved Axis Bank Mutual Funds offered by different asset management companies in India as collateral. CAMS and KFintech (formerly KARVY) act as reliable Registrars & Transfer Agents (RTAs) to secure the loan against your Mutual Funds. Exploring the smallcase Axis loan against Mutual Funds can be a prudent option for those seeking short or medium-term financial solutions by pledging their Axis Bank Mutual Funds.
Note: This information regarding interest rates was updated on April 19th. For the latest updates on interest rates, fees, and charges, visit the smallcase help centre for LAMF.
List of Approved Schemes for Axis Bank Loan Against Mutual Funds
Here is a list of approved schemes for loans against mutual funds Axis Bank:
1. Axis Arbitrage Fund(D)-Direct Plan
2. Axis Arbitrage Fund(G)-Direct Plan
3. Axis Arbitrage Fund-Reg(D)
4. Axis Arbitrage Fund-Reg(G)
5. Axis Bluechip Fund-Reg(D)
6. Axis Bluechip Fund(D)-Direct Plan
7. Axis Bluechip Fund-Reg(G)
8. Axis Bluechip Fund(G)-Direct Plan
9. Axis Equity Saver Fund(G)-Direct Plan
10. Axis Equity Saver Fund(MD)-Direct Plan
11. Axis Equity Saver Fund(QD)-Direct Plan
12. Axis Equity Saver Fund-Reg(G)
13. Axis Equity Saver Fund-Reg(MD)
14. Axis Equity Saver Fund-Reg(QD)
15. Axis Focused 25 Fund-Reg(D)
16. Axis Focused 25 Fund-Reg(G)
17. Axis Regular Saver Fund(AD)
18. Axis Regular Saver Fund(G)
19. Axis Regular Saver Fund(G)-Direct Plan
20. Axis Regular Saver Fund(HD)
21. Axis Regular Saver Fund(QD)
22. Axis Midcap Fund-Reg(D)
23. Axis Midcap Fund-Reg(G)
24. Axis Midcap Fund(G)-Direct Plan
25. Axis Triple Advantage Fund-Reg(D)
26. Axis Triple Advantage Fund-Reg(G)
Disclaimer: This article is for informational purposes only. Please note that the info is updated as on 19th April, 2024. For the latest info, please refer to Axis Bank’s official resources.
Documents Required to Avail Loan Against Axis Bank Mutual Funds on smallcase
Apply for an Axis Bank loan against mutual funds effortlessly through the smallcase app. Simply provide the following documents:
- Your PAN information
- Mutual fund-related contact details
- Potentially your Aadhar card for verification
- You may also need to share your bank details for fund transfer
- Complete the process by digitally signing the online loan agreement
- Once approved, expect the funds in your bank account within 3 hours.
For any assistance, reach out to our support team at help@smallcase.com.
Will the Axis Bank Mutual Funds Still Generate Returns After Being Pledged?
Yes. However, although you can continue to earn returns on your Axis mutual fund investments while using them as collateral for a loan through smallcase, you cannot sell or redeem these funds until the loan is settled.
Can You Sell Your Axis Bank Mutual Funds After Taking Loan Against Them?
No. You can continue earning returns from your Axis Bank Mutual Fund investments but cannot sell/redeem these funds while they are still pledged as collateral for loans.
What Happens in the Case of Active SIPs or Invest More (Lumpsum Investments) in Pledged Axis Bank Mutual Fund?
Investing more in pledged mutual funds won’t affect your current investments. You retain complete control over these additional investments, whether made in lump sum or through SIP orders.
Additionally, when you pledge funds on smallcase for loans, any Active System Transfer Plan (STP) or Systematic Withdrawal Plan (SWP) you’ve initiated will be temporarily halted or cancelled.
Maximum Loan Limit on Your Axis Bank Loan Against Mutual Funds
Your credit limit is the maximum amount you can borrow by using your eligible mutual funds as collateral. The borrowing amount is calculated based on a percentage of the value of the mutual funds you want to leverage. Equity mutual funds have a borrowing percentage of 45%, while debt mutual funds have a borrowing percentage of 75%. At smallcase, you can avail an Axis Bank loan against mutual funds starting from ₹25,000, with upper limits set at ₹5 crore.
Terms of Loan Closure, Charges & Interest
After repaying the principal and accrued interest, you can close your Axis Bank loan against mutual funds without extra charges. Maintaining the credit limit post-repayment allows access to funds as needed, with interest applied only on withdrawals. Upon closure, you can release collateralised mutual funds for redemption or sale.
For further details on fees, charges, and interest rates, refer to the table below before availing loans against mutual funds with Axis Bank 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 |
| Annual Renewal Charges | None |
| 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 |
| Security Swap Charges | None |
| Collection/Legal Charges | In case of default: Actuals |
Note: This information was updated on April 19th. For the latest updates on interest rates, fees, and charges, visit the smallcase help centre for LAMF.
To Wrap It Up…
The Axis Loan Against Mutual Funds, offered on smallcase, allows you to access funds without selling your investments. Opting for this loan empowers you to meet your financial needs while your investments grow. Understanding the benefits, eligibility, and application process enables you to utilise your investments for immediate monetary requirements. So go on, explore the avenues of the Axis Bank loan against mutual funds at smallcase!
Frequently Asked Questions (FAQs)
Yes, you can quickly check your mutual fund holdings and see your eligible loan amount at Axis Bank through smallcase. Plus, you can get a loan against your mutual fund holdings within just under 3 hours with smallcase!
At smallcase, your credit limit is determined by the value of your eligible mutual funds used as collateral. Equity mutual funds have a 45% lending percentage, while debt mutual funds have an 75% lending percentage. Your credit limit equals the highest loan amount obtainable based on this calculation.
Axis mutual funds loan at smallcase typically lasts for 36 months but can be ended early without extra charges. You also have the option to extend the loan beyond the initial 36-month period.
You can use your Axis Bank mutual funds as collateral to secure a loan, keeping your investments growing while addressing immediate financial requirements.
No. There are no lien removal charges if you request one after taking out the loan against your Axis Bank mutual funds.
The default tenure of the loan repayment against Axis Bank mutual funds at smallcase is 36 months.
