|
Axis Bank Loan Against Mutual Funds Highlights |
|
| Interest rate | 11.49%-13.75% p.a. |
| Loan Amount | Up to Rs 2 crores |
| Tenure | 1 year |
| LTV Ratio | For debt mutual funds: Up to 85% 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 Facility |
| Processing Fees | Up to 5% of the sanctioned loan amount or Rs 2,000, whichever is higher |
| Prepayment/Foreclosure Charges | NIL |
Rates updated as of 7 November 2024
Get Instant Loan Against Mutual Funds @ 10.5% p.a. onwards in 4 hrs Apply Now
Axis Bank Loan Against Mutual Funds Interest Rates
While the interest rates of Axis Bank LAS start from 11.49% p.a. onwards, the bank has not mentioned specific interest rates for its Loan Against Mutual Fund Scheme. The interest rates charged from the borrowers of loan against mutual fund is subject to quarterly revision. Moreover, the interest component is charged only on the amount drawn and not on the sanctioned limit.
| Product | Interest Rates (p.a.) |
| 24*7 Loan Against Securities (Digital) | 11.49% |
| Loan Against Securities (Physical) | 11.50%-13.75% |
Fees & Charges of Axis Loan Against Mutual Funds
Renewal Charges
| Product | Charges |
| Loan against Equity Mutual Fund | Rs 3,000 |
| Loan against Debt Mutual Fund | 0.1% of the sanctioned loan amount or Rs 5,000, whichever is lower |
Other Fees & Charges
| Product | Charges |
| Processing Fees | Up to 5% of the sanctioned loan amount or Rs 2,000, whichever is higher |
| RTGS | As applicable at the bank level |
| Penal Charges | 8% above the applicable interest rate on the overdue amount (not exceeding Rs 1 lakhs per instance) |
| Pledge Charges | As applicable |
| Prepayment Charges | NA |
| No due certificate | NA |
| NEFT | As applicable at the bank level |
| Solvency Certificate | NA |
Why liquidate? Just leverage! Unlock your mutual funds @10.50% p.a.! Apply Now
Features of Axis Bank Loan Against Mutual Funds
Purpose
Prospective borrowers can use the loan proceeds for financing any personal or business purposes including children’s higher education, home renovation, a wedding event or any emergency expense. This would save the investors from redeeming their long term mutual fund investments for meeting their short/medium term financial shortages. Further, borrowers will continue to get all the benefits of an investor after applying for a loan against mutual funds.
Tenure
Axis Bank offers loan against mutual funds in the form of 1-year overdraft facility, which is reviewed and renewed after every 12 months.
Loan amount
Axis Bank has not mentioned any maximum or minimum loan amount for the loan against mutual fund facility offered through physical process. However, the bank has specified the loan limit for its digital loan applications. Prospective borrowers can avail loan against equity and debt mutual funds digitally for up to Rs 2 crores through the 24×7 Digital LAS facility via net banking and Axis Bank mobile banking app. Further, borrowers can also increase their drawing power by pledging more securities in the same loan account.
Stated below is the breakdown of the loan amounts offered against equity and debt mutual funds through Axis Bank Digital LAS facility:
| Collateral | Loan Amount |
| Equity Mutual Fund | Up to Rs 10 lakhs |
| Debt Mutual Fund | Up to Rs 2 crores |
LTV Ratio
| Collateral | LTV Ratio (in your overdraft account) |
| Equity Mutual Fund | Up to 60% of the NAV of pledged fund(s) |
| Debt Mutual Fund | Up to 85% of the NAV of the pledged fund(s) |
Margin Requirement
Axis Bank will review the margin requirement regularly. In the situation of volatile fluctuations in the prices of units, the applicant will cover up the shortfall in the sanctioned LTV Ratio, if any, within four days, failing which the security may be liquidated.
Don’t sell, just borrow! Get loan against your mutual funds in just 4 hours! Apply Now
Eligibility Criteria of Axis Bank Loan Against Mutual Funds
For Digital Loan Against Mutual Funds
Stated below are the eligibility criteria for availing loan against mutual funds digitally from Axis Bank:
- An applicant should be a resident Indian
- The age criteria for applicants is 18 years to 75 years
- The applicant should have a current or savings account with the Axis Bank
- The applicant should be a single account holder in mutual funds
- Resident Indian is eligible for availing digital loan against mutual funds
- Mutual funds maintained in physical or SOA based account are also eligible
For Loan Against Mutual Funds – Physically
Stated below are the eligibility criteria for availing loan against mutual funds physically from Axis Bank:
- Resident Indians, NRIs, HUFs, Partnership firms, Sole Proprietorship and Private Limited Companies are eligible for availing loan against mutual funds from Axis Bank
- Individual applicants should be between 18 years to 80 years
Documents Required for availing Loan Against Mutual Funds
Stated below are the documents required for applying for a loan against mutual funds physically from Axis Bank:
- KYC documents
- Pledge form for the creation of pledge
- Latest statement of holding for mutual funds
- Optional – Guarantor Form (The form is mandatory in case of joint holding)