Digital Loan Against Mutual Funds Features & Benefits
Investing in loan against securities can be a popular method of creating wealth. But, are you aware, you can even take a digital loan against mutual funds when you need money urgently?
So if you have Mutual Funds and yet worry about meeting your unplanned expenses, we have got you. Apply for loan against MF with smallcase from the comfort of your own home and explore your investment’s potential!
In this blog, we will discuss rate of interest for loan against mutual funds, it’s features, and benefits. Let’s dive in!
What is a Digital Loan Against Mutual Funds?
The digital loan against mutual funds refers to a complete digital and paperless process of availing loans on mutual funds that are registered with Computer Age Management Services Limited (CAMS) online.
Thus, the interest rate on loan against mutual funds can be applicable on the outstanding principal. No loan against mutual funds interest rate can be charged for the repaid principal amount.
Additionally, you can apply for a loan against SIP, debt mutual funds, FDs and more. However, it is important to check the loan against mutual funds eligibility and documentation (LAMF eligibility & documents) before applying for a loan against mutual funds.
Now that we have covered interest rates in loans against MF, let’s move on to the next section where we’re going to discuss the features and benefits of loans against mutual funds.
What are the Loan Against Mutual Funds Salient Features?
By availing loan against mutual fund units (LAMF) at smallcase, you can now protect yourself from any unforeseen occurrences by taking out loan funds secured by your assets. Here are some of its features:
- The loan is secured by a lien on mutual funds. Liens allow banks to sell or hold funds. As a result, if you mark a claim, you’re giving the bank authority over the fund units you hold.
- 100% digital process and instant credit of funds.
- Both debt and equity funds are eligible for a loan.
- You can avail up to 45% for equity MFs and 75% for debt MFs.
- Customers do not have to liquidate their mutual fund portfolios.
- Loans against mutual funds can be availed by first-time customers with no credit history.
What are the Benefits of Loan Against Mutual Funds?
Loan against Mutual Funds (LAMF) may offer several benefits to individuals who are looking to meet their financial needs without selling their mutual loans investment. Here are some key advantages:
- Get LAMF Limit Online Within Hours: No need to wait for days. Get instant approval on LAMF within 3 working hours.
- Wide range of Mutual Fund Schemes: From a list of 5000+ mutual fund schemes, you can see how much loan you can take against your funds.
- Zero Foreclosure Charges: You can make a payment towards your outstanding mutual fund loan amount anytime with zero foreclosure charges with smallcase.
- Attractive Interest Rate: Now you can easily avail the loan on mutual funds with an interest rate starting at 10.75% p.a. i.e. lower than unsecured loans and credit cards.
- Approved Securities: Mutual funds can be lien marking for both CAMS & KFin (earlier known as KARVY), Registrars & Transfer Agents (RTAs).
- Retain Ownership of Investments: By pledging the funds as collateral, you can access immediate funds while continuing to benefit from returns on your investments.
To Wrap It Up…
In conclusion, Loan against Mutual Funds (LAMF) offers a host of attractive features and benefits that can empower investors to meet their financial goals with greater flexibility and convenience. Download the smallcase app to apply for a Loan against mutual funds today!
FAQs
To avail a loan, you can only use mutual funds that are held in non-demat form, specifically those held as Statement of Account (SoA) with CAMS and KFin. Additionally, the mutual funds you possess must be included in the lender’s list of eligible mutual funds.
You have the option to provide shares as collateral, either from your own holdings or from eligible family members (parents, spouse, children, and siblings who are over 18 years old and share the same blood relation as you).
(a) Begin by importing your mutual fund investments and choosing the ones to be used as collateral.
(b) Add a bank account for fund reception and establish a monthly interest auto-debit mandate.
(c) Pledge your selected mutual funds.
(d) Sign online loan agreement.
The loan amount is determined by the value of the mutual funds you use as collateral. However, you can avail a loan against mutual funds from ₹25,000 to ₹5 crore.
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 –
