Loan Against Mutual Funds (LAMF): Eligibility & Documents
Applying for a loan can be one of the most challenging banking procedures in India. But with the advent of online banking and digitization, applying for a loan against securities has comparatively become more convenient for customers. At smallcase, an expert-curated stock portfolio investing platform for retail investors, we have always tried to make investing accessible for you. And in keeping with that, we have a brand new offering for you – Introducing Digital Loan Against Mutual Funds (LAMF)! Loans Against Mutual Funds are secured loans that require you to pledge your mutual fund holdings.
To obtain a LAMF, you need to meet certain eligibility criteria – let’s have a look at these criteria and other documents that you may need to apply for a loan against MF.
What is a Loan Against Mutual Funds (LAMF)?
The Loan Against Mutual Funds (LAMF) is a loan offered to customers against the lien of mutual funds. This Flexi Loan allows customers to withdraw money in one or more tranches as per their requirements. This product allows you to access liquidity by pledging or liens your mutual funds.
Loan Against Mutual Funds Eligibility & Documents
To avail a loan against mutual funds, it is advisable for a LAMF investor to be aware of the eligibility criteria and document requirements to smooth the process. Therefore, here we have tried to list down the loan against mutual funds requirements for you.
Loan Against Mutual Funds Eligibility via smallcase
smallcase has outlined certain factors to determine who can apply for a mutual fund loan. Here are the eligibility requirements to secure small case funds against mutual funds.
- Self-employed/ Salaried Residents (for equity and debt funding)
- Should be a resident of India
- Age – 18 Years to 65 years of age
- Loan – You can avail upto 5,00,00,000 or 5 Cr.
- Holding – You may hold Mutual Funds approved with CAMS & KFintech (RTAs)
What are the Documents Required for Loan Against Mutual Funds India?
The mutual funds documents usually differs from bank to bank. However, for most banks, these four documents are important. These include proof of identity, proof of address, proof of employment, and documentation confirming the ownership of the mutual fund investments.
For getting a LAMF on smallcase, you do not need any detailed list of documents* if you want to opt for a loan against MF. So experience the hassle-free process to get funds with zero formalities!
To Wrap It Up…
In conclusion, Loan against Mutual Funds (LAMF) can be a convenient and efficient way to meet your financial needs without liquidating your investments.
However, don’t let the fear of paperwork hold you back. The eligibility criteria laid out can be fairly simple as minimal documents are required in all digital-first offerings. Apart from the simple application process and eligibility criteria there can be so many other benefits of getting Loan against mutual funds.
Embrace the simplicity and convenience of smallcase, and join the ever-growing community of LAMF investors who might be leveraging the potential of their mutual funds. Start building your wealth today with smallcase and experience a seamless loan application experience like never before.
*Some users may be asked to produce their Aadhar number in case of any discrepancies.
FAQs
To avail loan against mutual funds, an individual should be between 18 years to 65 years of age.
No, we do not allow loan against mutual funds which are held in demat form. For marking lien, you can use mutual funds registered with RTAs (CAMS or KFin) in the Statement of Account (SOA) form.
One can borrow a loan against mutual fund investments.
The interest rate on loan against mutual funds starts from 10.75% p.a.
All About Loan Against Securities & Loan Against Mutual Funds on smallcase –
smallcase offers quick and easy disbursement of loans against securities ( LAMF), all about eligibility, documents, features and benefits of Loan against mutual funds and the process for applying for loan is just one click away –
