HDFC Bank Loan Against Mutual Funds

HDFC Bank Loan Against Mutual Funds Highlights
Interest rate	As per the applicant’s credit profile
Loan Amount	Rs 50,000 to Rs 1 crore
LTV Ratio	For debt mutual funds: Up to 80% of the NAV of pledged fund(s); For equity mutual funds: Up to 60% of the NAV of pledged fund(s)
Type of Facility	Overdraft
Processing Fees	Up to 0.50% of the limit (Minimum: Rs 500; Maximum Rs 1,500)
Prepayment/Foreclosure Charges	NIL

Updated as of 7 November 2024

HDFC Bank Loan Against Mutual Funds Interest Rates

HDFC Bank has not mentioned interest rates for its Loan Against Mutual Fund Scheme. The interest is calculated only on the amount drawn and not on the sanctioned limit. The interest is calculated on the daily outstanding balance and debited to the borrower’s account at the end of every month.

Fees & Charges of HDFC Loan Against Mutual Funds

Product	Charges
Processing Fees	Up to 0.50% of the limit (Minimum: Rs 500; Maximum Rs 1,500)
Enhancement cases	Rs 500
Stamp duty and other statutory charges	As per the state’s applicable laws

Features of HDFC Bank Loan Against Mutual Funds

Purpose

Prospective borrowers can avail HDFC LAMF digitally by pledging their mutual fund investments online and get an overdraft limit set in their account. However, the loan proceeds cannot be used for capital market activities, speculative activities or any anti-social purposes. This would help the investors to meet financial commitments without having to liquidate their mutual fund investments.

Tenure

HDFC Bank has not specified the tenure of its loan against mutual funds. However, most banks offer LAMF facility for 1 year, with a renewal facility every year. Thus, prospective borrowers should contact the bank to know more about the loan tenure and renewal.

Loan amount

Prospective borrowers can avail loan against equity and debt mutual funds digitally, starting from Rs 50,000 via HDFC net banking. Stated below is the breakdown of the loan amounts offered against equity and debt mutual funds:-

Particulars	Loan Amount
Loan Against Equity Mutual Fund	Up to Rs 20 lakhs
Loan Against Debt Mutual Fund	Up to Rs 1 crore

LTV Ratio

Collateral	LTV Ratio (in your overdraft account)
Equity Mutual Fund	Up to 50% of the NAV of the pledged fund(s)
Debt Mutual Fund	Up to 80% of the NAV of the pledged fund(s)

Eligibility Criteria of HDFC Bank Loan Against Mutual Funds

Stated below are the eligibility criteria for availing loan against mutual funds digitally from HDFC Bank:

• An applicant should be a holder of an HDFC Bank Savings Bank Account having a single mode of operation
• The applicant should have HDFC net banking User ID and password
• The applicant should have holdings in Mutual Funds with CAMS as the Transfer Agent. The eligible Asset Management Companies as per the bank’s website are listed below:
  • Aditya Birla Sun Life Mutual Fund
  • DSP Blackrock Mutual Fund
  • HDFC Mutual Fund
  • HSBC Mutual Fund
  • Tata Mutual Fund
  • ICICI Prudential Mutual Fund
  • IDFC Mutual Fund
  • Kotak Mahindra Mutual Fund
  • L&T Mutual Fund
  • SBI Mutual Fund
• Single holder of a Mutual Funds with CAMS

Documents Required for availing HDFC Loan Against Mutual Funds

HDFC Bank provides loan against mutual funds 100% digitally and therefore no documents are required for availing this facility.