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Jio Finance Limited LAMF Highlights |
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| Interest Rate | 9.90% p.a. onwards |
| Loan Amount | Depends on the current value of mutual funds held by the applicant |
| LTV Ratio | Up to 50% of the NAV of mutual funds |
| Loan Type | Overdraft |
| Processing Fees | Up to 2% of the loan amount |
Rates as of 24th October 2024
Jio Financial Services Loan on Mutual Funds Interest Rates
Jio Financial Services LoMF interest rates start from 9.90% p.a. onwards. The interest is charged only on the amount withdrawn from the account.
Jio Financial Services LAMF Fees and Charges
| Particulars | Charges |
| Processing Fees | Up to 2% of the loan amount |
| Bounce Charges | Rs 500 per instance |
| Penal Charges | Up to 2% per month on the overdue amount |
| Voluntary Collateral Sales | 1% of value of securities being sold |
| Stamp duty charges | As per applicable law |
| AMC Fees | Up to 1% or Rs 2,500, whichever is higher |
Features of Jio Financial Services Loan Against Mutual Funds (LAMF)
Purpose: Borrowers can avail Jio Financial Services LAMF to meet their diverse financial needs, such as travel, wedding and education by borrowing against their existing mutual fund investments. Thus, the Jio Loan against MF borrowers can manage their short or medium-term financial needs without liquidating their existing mutual funds.
Loan Amount: Jio Financial Services has not disclosed the loan amount offered against mutual funds. However, the loan amount eligibility would depend on the current value of mutual funds held by the applicant.
LTV Ratio: The LTV ratio offered against mutual funds can go up to 50% of the value of mutual funds.
Loan Tenure: The tenure of Jio LoMF can go up to 3 years.
Margin Call Requirement: Any decline in the value of mutual funds pledged as collateral leads would lead to a decline in the eligible overdraft limit. If the amount utilized from the overdraft account exceeds the revised limit, the difference between the utilized amount and eligible limit will become overdue. The borrower will then have to either clear the overdue payment or pledge additional mutual funds to maintain the sanctioned LTV ratio, failing which the lender can sell the pledged mutual funds.
Eligibility Criteria for Financial Services Loan on Mutual Funds
Jio Loan against MF can be availed by Indian citizens in the age group of 18-75 years. While the NBFC has stated that it would consider the type of mutual funds and the applicant’s credit score while evaluating loan applicants, it has not disclosed the list of eligible mutual funds or any cut-off credit score for its LAMF applicants.