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IndusInd Bank Loan Against Mutual Funds Highlights |
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| Interest Rate | Depending on the applicant’s eligibility |
| Loan Amount | Minimum- Rs 2 lakh
Maximum- Equity Mutual Funds held in Demat form: Rs 20 lakh; Equity Mutual Funds held in physical form; Rs 10 lakh Debt Mutual Funds- Rs 50 crore |
| Type of loan facility | Overdraft |
| Tenure | 1 year |
| Processing Fees | Up to 1% (minimum Rs 2,500) |
Rates as of 17th October 2024
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IndusInd Bank Loan Against Mutual Funds Fees and Charges
| Particulars | Charges |
| Renewal Fee | Up to 0.50% (minimum Rs 2,500) |
| Processing Fee | Up to 1% (minimum Rs 2,500) |
| Pledge/Depledge charges | 0.02% of pledge/de-pledge value (minimum Rs 20 per tariff) |
Features of IndusInd Bank Loan Against Mutual Funds
Purpose: Applicants can avail LAMF from IndusInd Bank to meet their personal as well as business requirements without liquidating their investments. The lender offers Loan Against Securities in the form of overdraft facility.
Loan Amount: The loan amount offered against equity and debt mutual funds is mentioned below:
| Collateral | Loan Amount |
| Minimum | Rs 2 lakh |
| Maximum | Equity Mutual Funds-
Rs 20 lakh against Demat Equity Mutual Funds Rs 10 lakh against physical Equity Mutual Funds Debt Mutual Funds- Rs 50 crore |
Tenure: IndusInd Bank offers Loan Against Mutual Funds in the form of overdraft facility for tenure of 1 year. This facility can be renewed annually.
Margin Call Requirement: Reduction in the market value of mutual funds pledged as collateral with IndusInd Bank leads to reduction in the eligible overdraft limit. As the amount utilized from overdraft account exceeds the revised eligible limit, the difference between the eligible limit and utilized limit becomes overdue. The borrower is asked to pay the overdue amount and or pledge additional mutual funds as collateral, failing which the bank shall sell the pledged mutual fund units.
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Eligibility Criteria for IndusInd Bank Loan Against Mutual Funds
For Individuals:
- Indian residents between 18-70 years of age are eligible for IndusInd Bank Loan Against Mutual Funds.
- Individuals holding approved securities.
For Non-individuals:
- Indian entities are eligible for IndusInd Bank Loan Against Mutual Funds.
- Non-individuals can only avail loans against approved Debt Mutual Funds and Bonds.
Documents Required for availing IndusInd Bank Loan Against Mutual Funds
- Duly filled application form and loan agreement
- KYC documents- ID proof, address proof and signature proof
- Annexure W/lien request letter for pledging securities
- Demat Account Statement or Statement of Holdings
- For individuals, ITR with income computation for last 2 years and last 3 months’ bank statement for loan amount above Rs 50 lakh.
- Non individuals are required to submit the audited balance sheet, profit and loss account, ITR for last 2 years and bank statement of the last 2 years.