Disclaimer
Results generated by the calculator(s) are indicative in nature.
The calculator(s) are not intended to provide its users/ customers with results that are either certified by Bajaj Finance Limited (“BFL”) or are an obligation, assurance, warranty, undertaking or commitment, financial and professional advice by BFL, under any circumstances. The calculator(s) is only a tool that assists the users/ customers arrive at results of various illustrative scenarios generated from data input by the user/ customer. The use of the calculator is entirely at the risk of the user/ customer, BFL is not responsible for any reason, for any errors in any outcome resulting from the use of the calculator. The interest rate applied on the loan will depend on the prevailing rates at the time of loan booking.
Frequently asked questions
The loan-to-value currently offered by Bajaj Finance Limited is up to 90% of the mutual fund value.
Please note that the above are subject to change depending upon the applicable regulations and internal policies of BFL.
The eligibility criteria for a loan against mutual funds with Bajaj Finance Limited are as follows:
a. Securities: You should have a minimum share of Rs. 50,000.
b. Ownership: You should be the owner of the securities and have clear and marketable title to them.
c. Age: You should fall under the age bracket of 18 to 90 years.
d. Type of mutual funds: Your funds should be under the approved list of 5000 + funds.
The fees and charges associated with a loan against mutual funds may vary depending on the lender and the terms of the loan agreement. Here are some potential fees and charges that you may encounter:
a. Interest rate: The lender may charge an interest rate on the loan amount, which can vary based on the loan amount, repayment period, and other factors.
b. Processing fee: The lender may charge a processing fee for the loan, which is usually a percentage of the loan amount.
c. Part-prepayment penalty: Some lenders may charge a part-prepayment penalty if you choose to repay the loan before the end of the loan term.
d. Late payment fee: If you miss a loan repayment, the lender may charge a late payment fee.
e. Stamp duty: In some cases, a stamp duty may be charged on the loan agreement.
The interest on a loan against mutual funds is calculated based on the amount of loan that is taken and the interest rate offered by the lender. Typically, the interest rate on loans against mutual funds is lower compared to other forms of loans, as the mutual funds act as collateral for the loan and carry a lower risk.
Loan against mutual funds allows you to leverage the value of your investments without liquidating them. This provides liquidity while maintaining potential market gains. However, consider the risks; if the market value of your mutual funds declines, you might need to pledge additional assets to maintain the loan-to-value ratio. It's crucial to assess your financial situation, loan terms, and market conditions before opting for a loan against mutual funds.
