Loan Against Mutual Fund
Need funds without redeeming your mutual fund investments? With our Loan Against Mutual Fund facility, you can unlock the value of your investments while continuing to benefit from their long-term growth potential.
Instant Liquidity Without Selling Your Investments
Why redeem your investments when you can easily avail a loan against them? Through the NJ E-Wealth platform, you can apply online for a Loan Against Securities (LAS), receive quick approval, and get funds disbursed within a short time.
Your mutual funds remain invested while you receive the liquidity you need. This helps you avoid unnecessary redemption, market timing risks, and immediate tax liabilities.
There are no foreclosure charges for margin repayments, partial repayment options are available, and the structured EMI system makes repayment simple and affordable.
Why Choose Loan Against Mutual Funds?
Instant Liquidity
Access funds quickly without disturbing your long-term investment strategy.
Retain Ownership
Continue to own your investments while they remain pledged as collateral.
Avoid Tax Impact
Prevent unnecessary capital gains tax that may arise from redeeming investments.
Flexible Repayment
Affordable EMI options with partial repayment facilities.
Loan Features
| Feature | Details |
|---|---|
| Product | Loan Against Securities (Term Loan) |
| Minimum Loan Amount | ₹25,000 |
| Maximum Loan Amount | ₹50,00,000 |
| Loan Tenure | 6 Months to 60 Months |
| Interest Rate | 12% – 15% per annum (Depending on tenure) |
| Processing Fee | 0.5% of Loan Amount (Maximum ₹20,000) |
| Documentation Charges | ₹500 (First Loan), ₹200 (Subsequent Loans) |
| Prepayment Charges | 2% on prepaid principal amount |
| EMI Due Date | 10th or 25th of the month depending on loan disbursal date |
Eligible Securities
- Approved Equity Mutual Funds
- Approved Debt Mutual Funds
- Hybrid Mutual Funds
- Fund of Funds
- Balanced Funds
Loan Can Be Used For
- Business Expansion
- Property Purchase or Renovation
- Education Expenses
- Medical Emergencies
- Marriage & Family Functions
- Vehicle Purchase
- Personal Needs
- Debt Consolidation
Important Information
Margin Requirements
Borrowers are required to maintain the prescribed margin throughout the loan tenure. Additional securities or partial repayment may be required if the margin falls below the required level.
Margin Call Notice
A period of three business days is provided to restore margin by either pledging more securities or repaying part of the outstanding loan.
EMI & Repayment
Loans are repaid through convenient monthly EMIs. Timely repayment helps avoid additional interest and protects pledged investments.
Delayed Payment Charges
Additional interest of 1.5% per month is applicable on delayed EMI payments. Dishonour charges may also apply wherever applicable.
Unlock the Value of Your Investments
Get quick access to funds without selling your mutual fund investments. Speak with our advisors today to learn more about Loan Against Mutual Funds.
Apply Now