FREQUENTLY ASKED QUESTIONS
As the name loan against mutual funds suggests you will be able to avail loan by pledging your Mutual Fund units. This is somewhat similar to other loan against assets product except that the entire process is digital and you continue to own the MF units with minimal restrictions placed.
The process takes less than 30 minutes. In some cases if the loan amount is beyond a threshold it could take one or two business days as they would require additional approval as per the regulation.
No, you will continue to own your mutual fund units. They will continue to accrue gains as per the market. However you will not be able to sell those units which you have pledged.
The only restriction is that you will not be able to sell the pledged units. Other than that you continue to own the MF units and enjoy the gains as per the market changes.
Heading
Amount or Percentage
Processing Fee
₹500 per annum
Interest Rate
11.5% per year
Bounce Charges
₹900 per bounce
Penal Interest Charge
2% per month
Liquidation Charge
0.35% of safe consideration + brokerage charges if any
Foreclosure charges
0
Since you are getting a credit line there’s no need to pay EMIs. Interest will be charged only for the amount that’s drawn from the credit line. For example, suppose you have availed an LAMF of Rs 100,000, a credit line for the same amount will be created. If you draw Rs 10,000 then interest will be charged for that amount.
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You can close a loan at any time by visiting our website and raise the request. Before you close a loan you should have cleared all the pending dues, interest and principal. There will not be any pre-closure charges.
With a loan, the amount is deposited into your bank account. The interest starts accruing from that day and needs to be repaid in EMIs. A credit line on the other hand gives you an option to not utilise the amount from day one. You only consume the amount you need only when you need it. No interest will be charged for a credit line that is unused. Interest will be charged only for the amount you draw from it. Also, there is no need to repay the principal i.e., no EMIs as long as you keep servicing the interest.
Since the entire process is digital we don’t require any physical documents. All the requisite documents will either be fetched in digital form or be generated (e.g., loan agreement) and to be signed digitally.
You can keep it open as long as you like. In some cases you may have to renew it once a year for a minimal renewal charge.
No. You can pre-close a loan at any time absolutely free of charge.
This could be due to one of the following reasons:
- The MF scheme has a lock-in period, e.g., ELSS, and the units are still in that lock-in period
- The lender is unable to accept the MF scheme as collateral, making it ineligible for a loan.
No. We do not need a credit score to issue loans against mutual funds.
We have partnered with multiple loan providers. The lender's details will be clearly mentioned in the loan agreement document.
You will receive a grace period and sufficient notifications to repay the loan. However, in an unfortunate event...
No. You pay interest only on the amount consumed from the credit line.
Interest has to be serviced in full once a month.
No. As long as you are servicing the monthly interest payment you do not have to pay the principal amount.
QuickLend is a Lending Service Provider, a platform that offers the best possible interest rates and experience for borrowers by tying up with multiple lenders.
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Loan against Mutual Fund
