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Canara Bank Loan Against Mutual Funds Highlights |
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| Interest Rate | Floating rates- 15.80% p.a.
Fixed rates- 16.55% p.a. |
| Loan Amount | Up to Rs 20 lakh |
| LTV Ratio | 50% of the pledged fund’s Net Asset Value or Market Value, whichever is less |
| Tenure | Up to 5 years |
| Types of Loan Facility | Term Loan and Overdraft |
| Processing Fee | 0.1% of the loan amount (Minimum Rs 100 and Maximum Rs 250) |
Rates as of 17th October 2024
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Canara Bank Loan Against Mutual Funds Interest Rates
Canara Bank has not mentioned any specific interest rate for the loan offered against mutual fund schemes. The interest rates offered for Canara Cash, the lender’s loan against securities scheme, are mentioned below:
| Floating Interest Rates | 15.80% p.a. |
| Fixed Interest Rates | 16.55% p.a. |
Canara Bank Loan Against Mutual Funds Fees and Charges
| Particulars | Charges |
| Processing Fee | 0.1% of the loan amount (Minimum Rs 100 and Maximum Rs 250) |
| Renewal Charges in case of Overdraft facility | 0.1% of the loan amount (Minimum Rs 100 and Maximum Rs 250) |
| Prepayment Penalty | NIL |
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Features of Canara Bank Loan Against Mutual Funds
Purpose: Canara Bank offers Loan Against Mutual Funds to meet the personal as well as business requirements of the applicants. Thus, the borrowers can fulfill their financial needs without liquidating their existing mutual fund investments.
Loan Amount: The loan amount offered for Canara Bank Loan Against Mutual Funds is up to Rs 20 lakh.
LTV Ratio: The LTV ratio offered for Canara Bank Loan Against Mutual Funds is 50% of Net Asset Value or market value, whichever is less.
Tenure: Canara Bank offers Loan Against Mutual Funds for a tenure of up to 5 years. The bank also sanctions OD limit selectively to its borrowers.
Margin Call Requirement: The eligible overdraft limit reduces with the reduction in the market value of mutual funds furnished as collateral with Canara Bank. As the amount utilized from overdraft accounts exceeds the revised eligible limit, the difference between the eligible limit and utilized limit becomes overdue. If the borrower fails to repay the overdue amount or pledge additional mutual funds as collateral, the bank shall sell the pledged mutual fund units.
Eligibility Criteria for Canara Bank Loan Against Mutual Funds
Canara Bank offers Loan Against Mutual Funds to both new as well as existing customers. However, the bank has not disclosed any specific information about eligibility conditions related to the age, credit score, customer type, etc. of its loan against MF applicants.
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Documents Required for availing Canara Bank Loan Against Mutual Funds
- Duly filled application form with 2 passport size photographs of applicant or co-applicant.
- ID Proof- Aadhar card, Voter ID, Passport, PAN card, Driving License.
- Address Proof- Driving License, Aadhar card, Voter ID, Passport, Electricity bill, Telephone bill, business proof related GST, etc.
- Photocopy of PAN card.
- Age proof
- Latest salary certificate
- Income proofs like Income Tax Return or ITAO
- Last 2 year’s financial statement for non-salaried individuals