Q&A

Which bank gives loan against mutual fund?

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Which bank gives loan against mutual fund?

HDFC Bank is the first Bank to offer, Digital Loan Against Mutual Funds (LAMF). You can pledge mutual fund investments online and get an overdraft limit set in your account.

How does loan against mutual funds work?

Through a Digital Loan against Mutual Fund, you offer your MF units as collateral for the loan. The bank holds the Mutual Fund units as a security till you repay the loan amount. Your Mutual Funds will continue to earn returns, but you cannot sell them while you have pledged them to the bank.

Can you sell mutual fund units?

If you have invested in a mutual fund directly with the asset management company (AMC), then you can redeem using their online portal. You can choose to sell some units or all, as per your requirement. One can also redeem units offline by visiting the AMC office.

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Can we take loan against PPF?

It also enjoys tax deduction under Section 80C. Apart from these benefits, a PPF account holder can also avail a loan on the basis of the PPF balance standing to his credit. Loan can be availed from the 3rd to 6th financial year of the account. It will be a short term loan for 36 months and must be repaid by then.

What is the minimum loan amount under elite program?

₹ 8 lakhs
As an elite customer, you can get a minimum loan amount of ₹ 8 lakhs and a maximum loan amount of ₹ 25 lakhs. To be eligible for a personal loan, you should be under 60 years of age and have a good CIBIL score of at least 750.

Is it good to take loan against mutual fund?

Benefits of borrowing against mutual fund units If you think your mutual fund investment is lying idle, this is an excellent way to raise capital for short-term financial requirements quickly. The interest rates for a loan against mutual funds can be lower than that for personal loan interest rate.

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Can I take loan and invest in mutual funds?

Yes, it is very much possible to take a loan against your mutual fund investment . Such loans give an investor immediate liquidity against investment in mutual funds and meet short term capital requirements.