LAMF

Loan Against Mutual Funds in Net / Mobile Banking

Applying Loan Against Mutual Funds

We have launched Loan Against Mutual Funds through our Net / Mobile banking. Loan Against Mutual Funds allows you to borrow money by pledging your mutual fund units as collateral. Customers can avail Loan against approved Equity and Debt Mutual Funds that are registered with CAMS(Computer Age Management Services) and KFinTech in Net/Mobile banking. The Loan will be sanctioned in the form of an Overdraft facility.

Following are the features of the Loan Against Mutual Funds:
  • Loan Value: In case of Equity and Debt Mutual Funds, loan upto 50% of the Net Asset Value (NAV) with a maximum limit of Rs. 20 Lakhs
  • List of approved Mutual Funds: The facility is available for the list of Mutual Funds approved by Bank, which are registered with CAMS and KFinTech .
  • Exclusive facility: The facility is available exclusively for selected account holdings in individual capacity.
  • Charges: The charges associated with a loan against mutual funds typically include processing fees, interest rates, documentation charges, prepayment charges, and late payment penalties.
  • Rate of Interest: The rate of Interest for Loan against mutual funds varies based on the bank’s prevailing rates and policies.
  • Tenure of Repayment: The Loan(OD) tenure is period of 1 year.
  • Disbursement of Amount: Once the loan(OD) is approved, the amount is disbursed directly into your designated bank account.

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Last Updated on: 11-09-2026 08:33:54 PM

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