Kotak Mahindra Bank Loan Against Mutual Funds Highlights |
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Interest Rate | 8%-11% p.a. |
LTV Ratio | Equity Mutual Funds- Up to 50% of Current Net Asset Value
Debt Mutual Funds- Up to 85% of current market value |
Type of Loan Facility | Overdraft |
Tenure | 1 year (renewable annually) |
Processing Fee | Rs 50 – Rs 1,000 depending on the loan amount |
Rates as of 3rd October 2024
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Interest Rates of Kotak Mahindra Bank Loan Against Mutual Funds
While the interest rates of Kotak Mahindra Bank LAS start from 8% p.a. onwards, the bank has not mentioned specific interest rates for its LAMF Scheme. The interest component is charged only on the amount drawn and not on the sanctioned limit.
Minimum Interest Rate | 8.00% p.a. |
Maximum Interest Rate | 10.00% p.a. |
Loan Overdraft Charges
Minimum Interest Rate | 8.50% p.a. |
Maximum Interest Rate | 11.00% p.a. |
Kotak Mahindra Bank Loan Against Mutual Funds Fees and Charges
Particulars | Charges |
Renewal Fee | For Non-Insurance Cases- Rs 3,500
For Insurance Cases- Rs 5,000 |
Processing Fee | Rs 50-Rs 1,000 depending on the loan amount |
Demand Draft/Banker’s cheque | Payable at branch locations- Free 25 DD/BC per month; thereafter 1/1,000 (Min 40 Max 5,000)
Payable at non-branch locations- 2/1,000 (Min 40 Max 5,000) |
RTGS | Through Branch- Rs 15/txn
Through Net Banking- Free |
NEFT | Through Branch- Free
Through Net Banking- Free |
Fund Transfer | Branch and Net Banking- Free |
Cash Deposits | At home branch location- Free up to 2 lakh per month; thereafter 2.5/1,000
At non-home branch location- 4.5/1,000; Min 50 per txn |
Cash Withdrawal | From home branch location- Free
From non-home branch location- 2/1,000; Min 50 per txn |
AQB Non-maintenance | NIL till Loan Against Securities limit is availed; 900 per quarter thereafter |
Account Closure Charges | NIL |
Balance Statement | Rs 100 |
Interest Statement | Rs 100 |
Confidential Report | Rs 500 |
TDS Certificate | Rs 200 |
Photo attestation | Rs 300 |
Signature Verification | Rs 100 |
Paid cheque Report | Free |
Solvency Certificate | Rs 10,000 |
Credit Confirmation | Rs 500 |
PIN Regeneration | ATM/Phone/Net Banking- Rs 50 |
DD/BC Cancellation | Rs 100 |
ECS Return | Rs 300 |
Cheque Purchase Charges | 0.5/1,000 per day |
Foreign Currency Conversion Charges | Rs 100 |
Penal Charges | 8% p.a. |
Mutual Fund pledge charges for CAMS pledged digitally | Rs 700 |
Partial release of mutual funds | Rs 50 per request |
Benchmark change charges | Rs 10,000 |
Rate reduction charges | Rs 3,000 |
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Features of Kotak Mahindra Bank Loan Against Mutual Funds
Purpose: Applicants can use their Kotak Bank LAMF proceeds to finance their personal and business requirements. Thus, the applicants can fulfil their financial needs without compromising their existing mutual fund investments.
Overdraft Limit: Kotak Mahindra Bank opens a current account in the name of the borrower into which a sanctioned overdraft limit is set. The overdraft limit depends on the value and quantity of securities pledged with the bank.
LTV Ratio: The LTV ratio offered against equity and debt mutual funds is mentioned below:
Collateral | LTV Ratio |
Equity Mutual Funds | Up to 50% of Current Net Asset Value |
Debt Mutual Funds | Up to 85% of current market value |
Tenure: Kotak Mahindra Bank offers Loan Against Securities as an overdraft facility for tenure of 1 year that is renewable yearly.
Margin Call Requirement: If the market value of mutual funds pledged as collateral with Kotak Mahindra Bank reduces, the eligible overdraft limit will also reduce. As the amount utilized from overdraft account exceeds the revised eligible limit, the difference between the eligible limit and utilized limit becomes overdue. If the borrower fails to clear the overdue payment or pledge additional mutual funds as collateral, the bank shall sell the pledged mutual fund units.
Eligibility Criteria for Kotak Mahindra Bank Loan Against Mutual Funds
- Applicants should be salaried or self-employed Indian residents.
- The age of the applicant should be 18 years and above.
- Non-resident individuals or NRIs are eligible for funding against equity and debt mutual funds held in the name of the borrower.
- Non-individuals entities such as limited liability partnership, proprietorship concerns, partnership firms, HUF, private limited, limited companies are eligible for funding against debt securities.
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Documents Required for availing Kotak Mahindra Bank Loan Against Mutual Funds
- Duly filled application form of Loan Against Securities.
- Self-attested bank statement for last 3 months.
- Self-certified ITR for last 2 years.
- Self-attested mutual fund statement.
- Surrender value report for insurance.
- In case of equity, Client Master List for relevant Demat Account.