Loan Against Mutual Funds With Fibe

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.

Ticket size is from ₹15,000 to ₹10,00,000

Customers pay interest only on the utiliszed credit amount calculated every month, and the Principal amount is repaid in the last month of the loan 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 on Loan against the mutual fund dashboard and repay his interest portion or the customer has thean option to pay the total outstanding also. User can also repay the desired amount (Including charges)

1. Processing Fees – starting from 599+GST
2. Stamp Duty – 0.01 * Credit line opted
3. Lien marking charges – ₹500+GST

1. Aadhaar card
2. PAN details
3. 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

1. It is a consolidated account statement that contains details of the mutual fund holdings
2. CAS is used for allocating the limit to the user
3. 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 To cover this shortfall, the excess loan withdrawn must be repaid to realign with the updated LTV.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.