What are the charges while applying for a loan against mutual funds?

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

What documents are required?

Aadhaar card PAN details Bank details

What is lien marking?

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

How to remove the lien / un-pledge?

With a simple OTP request lien marked funds are un-lien in the customer’s portfolio

Which mutual funds are accepted for availing a loan against mutual funds?

More than 8,000 schemes are eligible with all major mutual fund houses included for availing the loan

What is CAS? Do I need CAS?

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 To cover this shortfall, the excess loan withdrawn must be repaid to realign with the updated LTV.

What should I do in case of a shortfall?

To adjust the shortfall amount, users should repay the excess amount utilized so that the LTV is maintained.

How can I close the loan?

Credit line/loan can be closed by clearing all dues with a single OTP consent request digitally.

Is it possible to make a part prepayment/ foreclosure before the end of the loan tenure?

Yes part payment and foreclosure (Free) are allowed

Which email address and phone number should I use to fetch holdings?

Mutual Fund investment linked Email & phone number are used for getting limits against mutual funds

What triggers a shortfall scenario in my loan 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.

How will I be informed if there is a shortfall in my loan against mutual funds?

Fibe will notify you through your registered contact details, such as email or SMS, if there is a shortfall in the collateral value

What are my options if a shortfall scenario occurs?

You can repay a portion of the loan (Shortfall amount) to bring the loan-to-value (LTV) ratio back within the acceptable range.

How can I prevent a shortfall scenario in my loan against mutual funds?

Regularly monitor the NAV of your pledged mutual funds and maintain a buffer of additional collateral or funds to address any potential shortfalls promptly.

What is the usual timeframe to address a shortfall once I am notified?

The timeframe can vary by lender, but it is typically between a few days from the time you are notified of the shortfall.

What is the cooling-off period?

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.

How can a customer proceed with a loan cancellation request?

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.

What is the process for cancelling a loan 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.

What happens to the customer’s mutual funds if the loan is cancelled during the cooling-off period?

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.

What happens if I do not address the shortfall in my loan against MF?

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.

Can the lender change the margin requirements and how will this affect my loan?

Yes, lenders may revise margin requirements based on market conditions. Increased margin requirements can lead to a higher likelihood of shortfall scenarios.

What is interest only EMI repayment?

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

How do I repay my loan?

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.

What are the required eligibility criteria to apply for a loan against mutual funds?

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

How much money can I borrow?

You can get a Loan Against Mutual Funds of ₹15,000 to ₹10 lacs

Loan Against Mutual Funds upto ₹10 Lakh with Fibe

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

Apply now

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:

Check Eligibility
Ensure you qualify with our easy-to-meet criteria, including having mutual funds registered in your name
Submit Document
Provide necessary documents like proof of identity, proof of address, etc., to process your application
Pledge Mutual
Mark lien on the mutual funds with OTP to unlock the limit.
Quick Disbursal
Once documents are verified, your mutual funds are pledged and the loan amount is disbursed instantly

Loan Against Mutual Funds Calculator

Estimate your loan amount instantly with our easy-to-use Loan Against Mutual Funds calculator.

Value of Equity Mutual Fund10,00,000

Value of Debt Mutual Fund800000

Loan available against Equity Portfolio

₹5,00,000

Loan available against Debt Portfolio

₹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?

Choose Fibe for a seamless, secure and efficient Loan Against Mutual Funds experience.

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.

View more FAQs

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