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Bank of Baroda Loan Against Mutual Funds Highlights |
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| Interest rate | 9.90%-11.25% p.a. |
| Loan Amount | Rs 1 lakhs to Rs 5 crores |
| LTV Ratio | For equity mutual fund: Up to 50%
For debt mutual fund: Up to 25% |
| Type of Facility | Overdraft |
| Processing Fees | Up to 0.35% of the limit (Minimum: Rs 500; Maximum Rs 2,500). The maximum limit is Rs 1,000 for Baroda e-trade account holders |
Rates updated as of 18 November 2024
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Bank of Baroda Loan Against Mutual Funds Interest Rates
While the interest rates of Bank of Baroda LAS start from 9.90% p.a. onwards, the bank has not mentioned specific interest rates for its Loan Against MF Scheme. The interest component is charged only on the amount drawn and not on the sanctioned limit.
| Product | Interest Rates (p.a.) |
| Loan Against Securities | 9.90%-11.25% |
Stated below are interest rates of Bank of Baroda loan against securities based on an applicant’s CIBIL score:
| CIBIL Score | Interest Rates (p.a.) |
| 800 and above | 9.90% |
| 771 & above but less than 800 | 10.25% |
| 726 & above but less than 771 | 10.50% |
| 701 & above but less than 726 | 10.75% |
| Less than 701 | 11.25% |
| (-1) | 10.75% |
Fees & Charges of Bank of Baroda Loan Against Mutual Funds
| Product | Charges |
| Processing Fees | Up to 0.35% of the limit (Minimum: Rs 500; Maximum Rs 2,500). The maximum limit is Rs 1,000 for Baroda e-trade account holders |
| Enhancement/Renewal | 0.35% of sanctioned amount (Minimum: Rs 250; Maximum Rs 1,250). The maximum limit is Rs 500 for Baroda e-trade account holders |
| Overdue Interest | 2% above sanctioned rate |
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Features of Bank of Baroda Loan Against Mutual Funds
Purpose
Prospective borrowers can avail Bank of Baroda LAMF by pledging their mutual fund investments either by visiting a Bank of Baroda branch or through online channels. The loan proceeds can be used to finance personal needs and the facility is provided in the form of an overdraft facility.
Tenure
Bank of Baroda offers LAMF facility for 1 year. The tenure can be extended further based on a bank’s review of the loan repayment.
Loan amount
Prospective borrowers can avail loan against equity and debt mutual funds, starting from Rs 1 lakhs. The loan limits vary based on whether the equity mutual fund holders have a demat account or held equity MFs in unit form. Below mentioned is the breakdown of the loan amounts offered against equity and debt mutual funds:-
| Particulars | Loan Amount |
| Equity Oriented MF in Demat Form | Up to Rs 20 lakhs |
| Equity Oriented MF in Unit Form | Up to Rs 10 lakhs |
| Debt Oriented MF in Unit/ Demat Form | Up to Rs 5 crores |
LTV Ratio
The margin of loan against equity mutual fund is 50% and for debt mutual fund is 25% of the Net Asset Value (NAV) of the pledged funds.
Margin Call
For equity mutual funds:
| LTV Breach | Timelines to sell |
| Above 50% to 60% | Maximum within T+4th Day of LTV Breach |
| Above 60% to 65% | Maximum within T+4th Day of LTV Breach |
| Above 65% | Maximum within T+2nd day of LTV Breach beyond 65% or 85% |
For debt mutual funds:
| LTV Breach | Timelines to sell |
| Above 75% to 80% | Maximum within T+4th Day of LTV Breach |
| Above 80% to 85% | Maximum within T+4th Day of LTV Breach |
| Above 85% | Maximum within T+2nd day of LTV Breach beyond 65% or 85% |
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Eligibility Criteria of BOB Loan Against Mutual Funds
Stated below are the eligibility criteria for availing loan against mutual funds from Bank of Baroda:
- Any individual, whether a resident or non-resident, including staff members involved in gainful activity with a regular source of income, is eligible to apply for the loan
- Two or more Individuals can apply for the loan under the following criteria:
- The securities should be held in any one’s/ joint name. In the case of joint name, all the holders must be either applicants or co-applicants.
- If a co-applicant is not the holder of the security, he or she should be a close relative of the holder
- At least one applicant or co-applicant should be engaged in gainful activity having a regular source of income.
- The total outstanding amount per individual should not cross the limits specified under ticket size from the entire banking system
- Individual applicants should be between 21 years to 70 years
- Applicants can avail loan against those mutual funds that are at least 1 year old and have Assets Under Management (AUM) of 100 crores
- CIBIL Cutoff: The applicant should have a minimum CIBIL score of 701. The applicants with a score of (-1) or (0) are also eligible for LAMF loan application
Documents Required for availing Bank of Baroda Loan Against Mutual Funds
Stated below are the list of documents required for availing loan against mutual fund from Bank of Baroda:
- Identity Proof
- Income Proof
- Address Proof
- Security Details