Loan Against Mutual Funds

BFL offers loans up to 90% of the value of your funds, where the valuation of your funds is updated every 5 mins. Hence, if the value of your funds increases during the tenure of the loan, the eligible pre-assigned loan limit will increase. Similarly in case the value of the fund falls, the pre-assigned loan limit will reduce proportionally. This would be subject to the “Sanction limit” not getting breached.

To raise a request for additional disbursement, please choose the 'Disbursement Request’ option in the Loan against securities service section available under the ‘My Relations’ tab.

Please note that it is subject to LTV being continued to be maintained with respect to the securities pledged and principal outstanding.

For mutual fund schemes, it is updated at the end of every day.

No. The interest is charged only on the loan amount that you have drawn down or the outstanding loan amount.

The interest cycle is calculated from the 7th day of each calendar month to the 6th day of the succeeding month. Interest due towards a loan against securities is generated on the 7th of every month.

Opening a loan against mutual funds account through the Bajaj Finance platform with respect to individual borrowers and which is subject to successful KYC completion.

For easy and smooth onboarding, we recommend keeping the below documents handy:

• PAN card
• Proof of identity and address (Aadhaar, passport, driving Licence, voter ID etc.)
• Fund holding statement

90% LTV is always required to be maintained for loan against funds facility. LTV may alter as a result of regulatory changes. Any shortfall in the maintenance of the 90% LTV occurring on account of movement in the fund prices shall be filled within 7 business days.

Further, in case the Drawing Power (DP) to Loan value falls more than 85% then BFL will go ahead with the liquidation of mutual funds with an intimation to the borrower.

You can repay the shortfall or mark a lien on additional mutual funds to make the shortfall good.

In case you fail to fulfil the shortfall within 7 business days, Bajaj Finance Limited holds the right to sell the lien marked mutual funds to make good the shortfall.

You can release securities, provided you are not in shortfall and have excess withdrawable funds available. The request will be processed within minimal time post verification.

To avail a loan against mutual fund, an individual should be between 18 to 90 years of age.

A loan against mutual funds (LAMF) is a type of loan where you pledge your mutual fund investments as collateral to secure the loan. This allows you to borrow money without selling your mutual fund units.