Tata Capital Loan Against Mutual Funds

Tata Capital Loan Against Mutual Funds Highlights
Interest rate	8.00%-20.00% p.a. onwards
Loan Amount	Up to Rs 40 crores (Up to Rs 5 crores for digital applications)
Tenure	1 year
LTV Ratio	50% to 70% of the market value
Processing Fees	Up to 5% of the sanctioned loan amount
Prepayment/Foreclosure Charges	NIL
Annual Maintenance Charges/ Renewal Charges	Up to 5% of the loan amount
Additional Pledge/lien creation charges	NIL

Rates updated as of 7 November 2024

Tata Capital Loan Against Mutual Funds Interest Rates

While the interest rates of Tata Capital LAS start from 8.00% p.a. onwards, the NBFC has not mentioned specific interest rates for its LAMF Scheme. The interest rates are based on the type of securities pledged as collateral.

Product	Interest Rates (p.a.)
Loan Against Securities	8.00%-20.00%

Fees & Charges of Tata Capital Loan Against Mutual Funds

Processing Fees & Other Charges

Product	Charges
Processing Fees (Non-refundable)	Up to 5% of the sanctioned loan amount
Document Processing Charges	NIL
Pledge/Lien creation charges	Rs 999
Stamp Duty (in Rupees)	At actuals
Prepayment/Foreclosure Charges	NIL
Collection Charges	NIL
Legal Charges	At actuals
Repossession Charges/Liquidation Charges	0.35% of sale consideration + brokerage applicable
Annual Maintenance Charges/ Renewal Charges	Up to 5% of the loan amount
Additional Pledge/lien creation charges	NIL

Penal Charges

Product	Charges
Default in payment of amounts due as per the Facility Documents	36% p.a. (3% per month) on the overdue amount
Non-creation of security	NIL
Dishonour of any cheque/ payment instruments	Rs. 600 per instrument per instance
Mandate Rejection	NIL

Features of Tata Capital Loan Against Mutual Funds

Purpose

Prospective borrowers can use the loan proceeds of Tata Capital LAMF for financing any personal or business purposes such as business expansion, personal expenses, medical emergencies or other financial commitments. This would save the investors from redeeming their mutual fund investments.

Tenure

Tata Capital offers loan against mutual funds for 12 months tenure with a renewal facility

Loan amount

Tata Capital has not mentioned the loan size for the LAMF facility offered through offline channels. However, the bank has specified the maximum and minimum loan limit for its digital loan applications. Further, borrowers can also increase their drawing power by pledging more securities in the same loan account. The drawing limit depends on the type of the mutual fund schemes (i.e. equity or debt oriented) pledged by the borrower. Tata Capital claims to update the drawing power within two business days.

Collateral	Loan Amount
Loan Against Securities	Rs 75,000 to Rs 40 crores
Loan Against Mutual Fund (Digital)	Rs 25,000 to Rs 5 crores

LTV Ratio

The NBFC offers an LTV ratio ranging from 50% to 70% of the market value of the concerned mutual fund

Collateral

Tata Capital LAMF borrowers can pledge their own securities or those of their blood relatives (parents, children, spouse and siblings only) who are over 18 years of age. If pledging securities belonging to someone other than the borrower, the security holder must be a signatory to the Revolving Credit agreement as a Co-Applicant.

Eligibility Criteria of Tata Capital Loan Against Mutual Funds

Tata Capital has not explicitly stated the eligibility criteria for loans against mutual funds. Prospective borrowers should visit Tata Capital branches for detailed information on eligibility and application procedures.

Documents Required for availing Tata Capital Loan Against Mutual Funds

Stated below are the basic documents required for individuals, proprietorships, companies, partnerships/LLPs, trusts and HUF for applying for a loan against mutual funds from Tata Capital:

• ID Proof: Aadhaar Card/Driving Licence/ Passport/Voter ID
• Address Proof: Aadhaar Card/Passport/Voter ID/Driving Licence
• Signature Proof: Passport/PAN card/Banker sign verification

Apart from the basic documents mentioned above, here is the breakdown of the different documents required for various applicants for a loan against a mutual fund application:

For Individuals:

PAN Card is also required for availing Tata Capital loan against mutual funds

For Proprietorship:

Besides the above basic documents mentioned, any two of the following are also required, provided the document contains the address:

• Registration Certificate
• VAT/CST/GST Certificates
• Certificate or license issued by the Municipal authorities under Shop & Establishment Act
• Income Tax Return in the name of the sole proprietor with Firm Income
• Income and Sales tax returns

For Partnership/LLP:

• Partnership Deed
• PAN of the partnership firm
• LLP Resolution (if LLP)
• Registration Certificate (only in case of registered Partnership Firms)
• Authority Letter from Partners

For Companies:

• PAN of the Company
• Memorandum of Association (MoA) & Articles of Association (AoA)
• Certificate of Incorporation
• Board Resolution

For Trusts:

• Registration Certificate
• PAN Card of Trust
• Trust Deed
• Trust Resolution

For HUFs:

• Hindu Undivided Family Letter (Annexure 2) signed by All Co-parceners
• CA Certified Letter confirming all Co-parceners
• PAN Card of HUF
• HUF Authorisation letter signed by All Co-Parceners
• Bank Statement of HUF as an Address Proof