FAQs

What is loan against mutual funds?

Loan against mutual funds (LAMF) allows you to borrow cash by using your mutual fund investments as collateral. Your mutual fund investments will continue to earn returns and meet your financial goals. And because your loan is backed by mutual funds, you get low interest rates and easy repayment options.

What are the conditions to get a loan from us?

• You should be between 18 and 70 years of age.
• Your entire mutual fund portfolio should not be less than ₹50,000.
• You should hold Mutual Funds approved with CAMS & Kfintech (RTAs). Debt & ELSS funds (units held > 3 years) are also eligible.
• Joint mutual fund holders are not eligible for a loan.
• You should be an Indian resident.
• No income proof required.

How much money can I borrow as a loan?

You can choose to set up any line amount ranging from ₹25,000 to ₹5 crore. Yes! You read it right, you can create a line up to ₹5 crore digitally in 5 minutes.

What is the credit limit and how is it calculated?

The credit limit is calculated by taking a percentage of the current market value of the mutual funds you wish to pledge. This percentage is 45% for equity MFs and 75% for debt MFs. To calculate the credit limit, we will need your PAN and phone number linked to your mutual funds holdings. Checking your credit limit does not impact your CIBIL score, however, it is a necessary step to determine your loan eligibility.

Can I choose any date for my monthly loan repayment?

Yes, you can choose to repay when you want. The credit line facility offers 100% flexibility for principal repayment. Only the interest needs to be repaid after the month ends.

Do I have to pay interest on the complete line amount?

No, you do not have to pay interest on the complete line amount. Completely flexible for the customer and interest is only to be paid on the amount used. Interest is calculated daily based on the loan outstanding you have at day end. Some scenarios to explain:

• If the loan amount at day end is zero, there will be no interest charged for that day.
• If the amount is withdrawn, used, and repaid in 10 days, you’ll only be charged interest for 10 days.

What is the tenure of the loan against mutual funds?

The tenure of the loan is up to 36 months. During this tenure, you can do part-prepayment or foreclosure of the loan without any charge.

What are the documents required?

The entire process is 100% digital, so there is no requirement for any physical documents for a loan against mutual funds. To ensure a smooth and quick process, please have the following information handy:

• PAN card number
• Email ID associated with CAMS and KFintech (for mutual fund verification)
• Bank account details for account verification and receiving the loan amount
• Debit card or net banking details for setting up the mandate.

What is lien marking/pledging of Mutual Funds?

When you take a loan against your mutual fund units, we lien mark/pledge your mutual fund units in the name of the lender, so that it cannot be redeemed/sold until you pay back the loan. The lien marking process is done 100% digitally and in real-time.

How to update your mobile number or email address in your CAS?

You can change your email/mobile number through MFCentral. Steps to change email/mobile number:

• Sign up at MFCentral.
• Put a service request.
• MFCentral will update the email/mobile number on your behalf within 1-2 days.

Which mutual fund schemes are eligible to take loans?

More than 4500+ mutual funds from different asset management companies (AMCs) in India are eligible to take loans with us. Not eligible - Tax Saving Fund units with a date of purchase less than 3 years, i.e., not matured.

How do I check my limit with us?

We just need your PAN, mobile number, and MF registered email ID to check your limit. This is done just after signing up in the journey so you know during the journey what you are getting.

Do I need to upload CAS to get my limit?

No. This is done automatically while checking the limit.

When will my funds be unlienmarked?

This can be done any time upon customer request conditional on the current loan amount pending against your mutual fund units. Depending on your current loan amount/utilisation, you can remove the lien from some mutual fund units or all mutual funds units you’ve pledged.