Loans Against Mutual Funds: Credit, Backed By your Investments
Unlock the true potential of your investments, while keeping them intact. Avail seamless loans on mutual funds to support your financial goals and aspirations.
Our reliable, asset-backed borrowing solution provides you with effortless access to credit as and when you require.
Withdraw funds whenever you need them, with repayment flexibility and no restrictions on foreclosure.
Interest is calculated on a day-to-day basis, only on the amount you utilise, making borrowing cost-efficient.
Continue to enjoy the returns on investments from your pledged mutual fund units, keeping your portfolio intact.
All eligible customers with CASA relationship with Standard Chartered Bank India can apply.
Application processing will take 5 to 7 days from date of receipt of application, provided the application is complete with all relevant documents
Loans against mutual funds allow one to borrow funds against the value of their holdings, while continuing to remain invested. With redemption, one gives up the ownership of their units, and their positions in the market.
When you take a loan against mutual funds, the lender places a lien on the pledged units. Mutual fund units that are pledged cannot be redeemed or switched, until the loan is repaid and the lien is released. Any additional units you hold in the same folio beyond the pledged amount remain freely redeemable.
One’s loan limit is set, based on the market value of their pledged units and lender-specific loan-to-value (LTV) norms. The limit may also vary based on the asset and sub-asset class, market movements, as well as the bank’s risk policies.
All credit facilities are at the sole discretion of the Bank and / or subject to RBI / SEBI regulations and all applicable laws from time to time.
Loan-To-Value (“LTV”) ratios are subject to the Bank’s periodic review and may change at any time. The value of the Securities pledged for the facility is determined by the Bank, as per its valuation methodology.
Interest rate, processing charges, Overdraft Transaction Charges and all other charges are subject to change at the sole discretion of the Bank and/or as directed by RBI.
