Bajaj Finserv Loan Against Mutual Funds: How to Apply for LAMF at Bajaj Finserv
Introducing the concept of Bajaj Finserv Loan Against Mutual Funds at smallcase! This blog explores how individuals can leverage their mutual fund investments to secure loans. It will delve into the details of this financial offering and examine the documentation, application process, and potential considerations for borrowers. Whether you’re seeking liquidity or exploring alternative financing options, understanding the dynamics of Bajaj Finserv loans against mutual funds on smallcase can offer valuable insights into optimising your financial strategy.
Loan Against Bajaj Finserv Mutual Funds on smallcase
Dividing your investments can hamper the potential of compounding. Borrowers can avoid prioritising short-term gains over long-term wealth. You can leverage your investments for a loan, ensuring their continuous growth while addressing immediate financial requirements. You can consider utilising smallcase to secure a loan against your Bajaj Finserv mutual funds.
Acquiring a mutual fund loan via smallcase is simple. Eligible individuals aged 18-70, whether self-employed or salaried residents of India, can apply for loans up to Rs. 5 cr. against approved Mutual Funds held with CAMS & KFintech.
How to Get a Loan Against Bajaj Finserv Mutual Funds Without Selling Your MF Investments?
You can now quickly establish an emergency credit line using your mutual fund investments without selling them on smallcase. Access emergency cash in under 2 working hours through smallcase, leveraging your mutual fund holdings as collateral at an interest rate of 10.75% per annum.
Securing a Bajaj Finserv Loan Against Mutual Funds (LAMF) via smallcase is simple:
- Download the smallcase app.
- Import your mutual fund holdings.
- smallcase will assess your holdings and display the maximum eligible loan amount.
- Confirm your desired loan amount (partial or full).
- Enter your bank account details.
- Receive the funds in your bank account within 2 working hours.
For assistance, contact the smallcase support team at help@smallcase.com if needed.
Explore the tailored benefits of Loan Against Mutual Funds (LAMF) to meet your financial goals and secure a prosperous future.
What is Loan Against Mutual Funds (LAMF)?
Mutual Funds (MFs) can be utilized as collateral for loans, akin to assets like gold or property. With smallcase, you can easily pledge your MFs digitally to secure a loan at a competitive interest rate of 10.75% per annum. This loan, offered as an overdraft facility, allows for flexible access to funds and repayment without additional charges. Interest is levied only on the utilized amount for the duration of the loan.
Choose from a variety of approved Bajaj Finserv mutual funds provided by different asset management companies (AMC) in India. CAMS and KFintech (formerly KARVY) act as reliable Registrars & Transfer Agents (RTAs) for securing loans against your MFs. Exploring the smallcase Bajaj Finserv loan against MFs can be a wise choice for those seeking short or medium-term financial solutions.
Note: This information regarding interest rates was updated on 29th August 2024. For the latest updates on interest rates, fees, and charges, visit the smallcase help centre for LAMF online.
Documents Required to Avail a Bajaj Finserv Loan Against Mutual Funds at smallcase
To get a Bajaj Finserv loan against your mutual funds, use the smallcase app’s fully digital process. You’ll need to provide:
- PAN details
- Phone number/email linked to your mutual funds
- Aadhar Card (for some users)
- Bank account information for fund transfer
- After e-signing the online loan agreement, submit it for approval.
Once approved, expect the funds in your account within 2 working hours. For further inquiries, contact help@smallcase.com
Will My Bajaj Finserv Funds Still Generate Returns After Being Pledged for Loans?
Yes. Once you pledge your Bajaj Finserv funds as loan collateral, they continue to generate returns. However, you cannot redeem or sell these funds through smallcase until the loan is repaid.
Can You Sell Your Bajaj Finserv Funds After Pledging For Loans on smallcase?
No. You can only generate investment returns after using your Bajaj Finserv mutual fund investments as loan collateral. You can redeem or sell your Bajaj Finserv fund investments only after repaying the loan in full.
What Happens in the Case of Active SIPs or Invest More (Lumpsum Investments) in Pledged Bajaj Finserv Mutual Funds?
Investing more in pledged mutual funds, either through lump sum payments or SIP orders, won’t be affected. Your investments won’t automatically become pledged, giving you complete control over them.
Moreover, when you pledge funds with smallcase for loans, you temporarily pause or cancel any Active System Transfer Plan (STP) or Systematic Withdrawal Plan (SWP) you’ve initiated.
Maximum Loan Limit on Your Bajaj Finserv Mutual Fund Investments
Your credit limit is decided by the worth of your qualifying mutual funds, which acts as your borrowing ceiling. The limit is determined by a percentage applied to your chosen mutual fund type.
Equity mutual funds allow borrowing up to 45%, while debt mutual funds permit up to 75%. At smallcase, loans against Bajaj Finserv mutual funds range from Rs. 25,000 to Rs. 5 cr. For the latest details, consult our smallcase Loan Against Mutual Funds (LAMF) help center.
Terms of Loan Closure, Charges & Interest
After paying off the loan amount and the interest accrued, you can close the loan with no extra charges. Once closed, you keep the credit limit intact and can withdraw funds when needed, only paying interest on the withdrawals. Furthermore, you can choose to release the mutual funds used as collateral, giving you the flexibility to redeem or sell them. See the table below for specifics on fees, charges, and interest rates for Bajaj Finserv loans secured by mutual funds on smallcase.
| Fees & Charges | Details |
| Processing Fee | Rs. 999 or 1% of loan amount whichever is higher upto a maximum of Rs. 4999 (GST applicable)Example –loan less than 1 lakh: Rs. 999 + GSTloan between 1 to 5 lakh: 1% of sanctioned amt + GSTloan greater than 5 lakh: Rs. 4999 + GST |
| Late Payment Interest | Penal Interest: 2% per month |
| Bounce Charges | Rs. 1,200 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 Rs. 0 to Rs. 150) |
| Lien Removal Charges | If requested after taking loan: NoneIf loan is cancelled before disbursement: Actual processing fee applicable |
| Collection/Legal Charges | In case of default: Actuals |
Note: This information was updated on 29th August 2024. For the latest updates on interest rates, fees, and charges, visit the smallcase help centre for LAMF.
Factors to Consider When Applying for Bajaj Finserv Loan Against Mutual Funds
Before taking a Bajaj loan against mutual funds, consider these factors:
- Loan-to-value (LTV) ratio: This determines the maximum loan amount against your mutual fund units. Evaluate if it meets your funding needs.
- Interest rates: Various lenders offer different rates. Compare to minimise borrowing costs.
- Repayment schedule terms: Understand loan duration and payment frequency. Ensure it fits your financial capabilities.
- Penalties for non-repayment: Know about penalties for default to avoid unexpected financial burdens.
- Risk tolerance: Assess your risk tolerance as fluctuating market values can impact your loan against mutual funds.
To Wrap It Up…
In conclusion, Bajaj Finserv’s loan against mutual funds offers a convenient financial solution for individuals seeking liquidity without liquidating their mutual fund investments. By leveraging the value of their mutual fund holdings, borrowers can access funds quickly and easily, with flexible repayment options. It’s essential to assess the terms and conditions carefully before opting for this loan product to ensure it aligns with your financial goals and circumstances. With Bajaj Finserv’s expertise and reliable services, borrowers can navigate their financial needs with confidence.
Frequently Asked Questions About Bajaj Finserv Loan Against Mutual Funds
Absolutely! You can easily check your Bajaj Finserv mutual fund holdings and find out your eligible loan amount against mutual funds on smallcase. Plus, you can get a loan against any of your mutual fund holdings within just under 2 working hours through smallcase!
Your credit limit is determined by the value of your eligible mutual funds used as collateral. Equity mutual funds have a lending percentage of 45%, while debt mutual funds have a lending percentage of 75%, at smallcase. This calculation dictates the highest loan amount you can be eligible for with smallcase.
The loan against Bajaj Finserv mutual funds through smallcase comes with the repayment tenure of 36 months, but you have the flexibility to settle it earlier without incurring any finance foreclosure charges. Additionally, you can extend the loan duration beyond 36 months if needed.
You can use your Bajaj Finserv mutual funds as collateral to secure a loan, ensuring your investments continue to grow while meeting your immediate financial needs.ds.
If you request a lien removal after securing a loan against your Bajaj Finserv mutual funds, you won’t incur any charges.
The default tenure of the Bajaj Finserv loan repayment against mutual funds at smallcase is 36 months.
Note: This information regarding interest rates was updated on 29th August 2024. For the latest updates on interest rates, fees, and charges, visit the smallcase help centre for LAMF.
