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Loan Against Mutual Funds Online
Access up to ₹10 lakhs instantly with our hassle-free application process
Loans starting from ₹15,000*
Disbursal in 10 minutes
Interest-only EMIs
What is a Loan Against Mutual Funds?
- No sellout: Get access to cash instantly without selling your mutual fund investments and build long-term wealth.
- High LTV: Get up a loan of 80% of your mutual fund's value, depending on the type of fund.
- Affordable loan: Get a loan that is more affordable than a traditional loan.
- Long-term wealth creation: Continue to generate returns even as you utilise the loan.
- No end-use restrictions: Get funds instantly and use it for any purposes like medical emergencies, home renovations, travel, etc.
Loan Against Mutual Funds Advantages with Fibe
Pay Interest only
Enjoy flexibility by paying interest only on the amount you use
Highest MF Schemes
Unlock instant cash from 8,000+ mutual fund schemes
Continue Earning Returns
Keep earning returns even when holdings are used as collateral
Zero Asset Liquidation
Meet financial needs without selling MF assets, preserving portfolio
Steps to Apply for Loan Against Mutual Funds
Applying for a loan on mutual fund is a straightforward process that can be completed in a few simple steps:
Loan Against Mutual Funds Calculator
Estimate your loan amount instantly with our easy-to-use Loan Against Mutual Funds calculator.
₹5,00,000
₹6,40,000
Interest rate 11%
Loan duration (in months) 06 M
Eligibility For Loan Against Mutual Fund
Eligibility Criteria
Age: Applicant must be between 19 and 65 years
Nationality: Indian citizen
Ownership: Holdings should be held by the applicant
Type of Mutual Funds: Both equity and debt mutual funds are generally acceptable
Documents Required
Minimum Investment: A specified minimum value of mutual fund units (usually around ₹20,000*) is required
KYC Compliance: Applicants must be KYC compliant as per SEBI regulations
Documentation: Basic documents like identity proof and address proof are required.
Lender-Specific Criteria: Additional eligibility criteria may vary depending on the lending institution
Interest Rates and Charges for Loan for Mutual Fund
| Charge Type | Details |
|---|---|
| Interest Rates | Starting from 11% per annum, depending on the borrower's profile |
| Processing Fees | ₹399 or 1.5% of the loan amount whichever is higher |
| Foreclosure charges | Nil |
| Documentation charges | Not applicable |
| Stamp duty charges | As per the state laws and regulations (included in PF) |
| Penal interest | Additional 2% to 3% per month on the overdue amount for delayed payments |
| Lien marking charges | ₹500 |
Why Choose Fibe Loan Against Mutual Funds?
- Efficient & User-Friendly: Experience a smooth, tailored borrowing process
- Easy Application: Minimal paperwork; apply from anywhere, anytime
- Competitive Rates: Secure low-cost loans while keeping your mutual fund investments intact
- Access Liquidity: Gain funds while your investment keeps growing
- Quick Approval & Disbursal: Receive funds promptly within 10 minutes
- Flexible Repayment: Choose options that align with your financial needs
- Top Security: Advanced technology safeguards your data; no hidden fees
- Credit Score Impact: Timely repayments can boost your credit score
FAQs on Loan Against Mutual Funds
Some types of mutual funds, such as demat-based, ELSS/tax saver (lock-in period), already pledged, and joint-holding, are not eligible for loans against MFs.
- Aadhaar card
- PAN details
- Bank details
It is a process where the customer hypothecates his mutual fund units towards the lender as a security till the loan is active, post the loan tenure, the mutual fund units get free to transact
With a simple OTP request lien marked funds are un-lien in the customer’s portfolio
More than 8,000 schemes are eligible with all major mutual fund houses included for availing the loan
- It is a consolidated account statement that contains details of the mutual fund holdings
- CAS is used for allocating the limit to the user
- Physical / DigitalCAS document is not required as a prerequisite, It is fetched with a simple OTP consent from the customer
Shortfall occurs when the loan amount exceeds the loan-to-value (LTV) ratio due to a drop in mutual fund values, typically during market corrections. As the value of mutual fund holdings decreases, the eligible loan amount is adjusted. To cover this shortfall, the excess loan withdrawn must be repaid to realign with the updated LTV.
To adjust the shortfall amount, users should repay the excess amount utilized so that the LTV is maintained.
Credit line/loan can be closed by clearing all dues with a single OTP consent request digitally.
Yes part payment and foreclosure (Free) are allowed
Mutual Fund investment linked Email & phone number are used for getting limits against mutual funds
A shortfall scenario is typically triggered by a significant decline in the Net Asset Value (NAV) of the mutual fund units pledged as collateral.
Fibe will notify you through your registered contact details, such as email or SMS, if there is a shortfall in the collateral value
You can repay a portion of the loan (Shortfall amount) to bring the loan-to-value (LTV) ratio back within the acceptable range.
Regularly monitor the NAV of your pledged mutual funds and maintain a buffer of additional collateral or funds to address any potential shortfalls promptly.
The timeframe can vary by lender, but it is typically between a few days from the time you are notified of the shortfall.
The cooling-off period for a loan against mutual funds is 3 days. During this time, the customer can cancel the loan. It allows borrowers to reconsider their decision and ensure they are comfortable with the loan terms before committing. The customer must only repay the particular day component of the processing fee, stamp duty, and the full lien marking amount.
If a customer wishes to cancel their loan within 3 days of issuance (i.e., lien marking or pledging), they are eligible for cancellation during the cooling-off period.
To cancel the loan, the customer can either contact customer support or follow the cancellation procedure provided by the lender. Customer support can be reached at 020-67639797.
The customer’s mutual funds remain unaffected. Any lien placed on the mutual funds will be removed once the loan is cancelled during the cooling-off period.
If the shortfall is not addressed within the stipulated time, the lender may liquidate the pledged mutual fund units to cover the outstanding loan amount.
Yes, lenders may revise margin requirements based on market conditions. Increased margin requirements can lead to a higher likelihood of shortfall scenarios.
Customers can pay interest only on the utilised credit line every month. The principal amount will have to be repaid at the end of the tenure.
Eg: – If a customer withdraws ₹1,00,000, He only pays ₹30 per day, and repays 1,00,000 and interest component on last month
To repay the loan, the customer can go the LAMF dashboard on the Fibe app. The customer can choose to his/her EMIs, foreclose the loans or part prepay the loan through the dashboard.
Qualify easily with our easy-to-meet criteria and apply for a loan against mutual funds in just 15 minutes:
- Age 19 yrs – 65 yrs
- Min ₹15,000 loan value
- Your funds are CAMS /KFIN-based
You can get a Loan Against Mutual Funds of ₹15,000 to ₹10 lacs
- Processing Fees – starting from 399+GST
- Stamp Duty – 0.01 * Credit line opted
- Lien marking charges – ₹500+GST
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