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HDFC Bank Loan Against Mutual Funds Highlights |
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| Interest rate | As per the applicant’s credit profile |
| Loan Amount | Rs 50,000 to Rs 1 crore |
| LTV Ratio | For debt mutual funds: Up to 80% 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 |
| Processing Fees | Up to 0.50% of the limit (Minimum: Rs 500; Maximum Rs 1,500) |
| Prepayment/Foreclosure Charges | NIL |
Updated as of 7 November 2024
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HDFC Bank Loan Against Mutual Funds Interest Rates
HDFC Bank has not mentioned interest rates for its Loan Against Mutual Fund Scheme. The interest is calculated only on the amount drawn and not on the sanctioned limit. The interest is calculated on the daily outstanding balance and debited to the borrower’s account at the end of every month.
Fees & Charges of HDFC Loan Against Mutual Funds
| Product | Charges |
| Processing Fees | Up to 0.50% of the limit (Minimum: Rs 500; Maximum Rs 1,500) |
| Enhancement cases | Rs 500 |
| Stamp duty and other statutory charges | As per the state’s applicable laws |
Features of HDFC Bank Loan Against Mutual Funds
Purpose
Prospective borrowers can avail HDFC LAMF digitally by pledging their mutual fund investments online and get an overdraft limit set in their account. However, the loan proceeds cannot be used for capital market activities, speculative activities or any anti-social purposes. This would help the investors to meet financial commitments without having to liquidate their mutual fund investments.
Tenure
HDFC Bank has not specified the tenure of its loan against mutual funds. However, most banks offer LAMF facility for 1 year, with a renewal facility every year. Thus, prospective borrowers should contact the bank to know more about the loan tenure and renewal.
Loan amount
Prospective borrowers can avail loan against equity and debt mutual funds digitally, starting from Rs 50,000 via HDFC net banking. Stated below is the breakdown of the loan amounts offered against equity and debt mutual funds:-
| Particulars | Loan Amount |
| Loan Against Equity Mutual Fund | Up to Rs 20 lakhs |
| Loan Against Debt Mutual Fund | Up to Rs 1 crore |
LTV Ratio
| Collateral | LTV Ratio (in your overdraft account) |
| Equity Mutual Fund | Up to 50% of the NAV of the pledged fund(s) |
| Debt Mutual Fund | Up to 80% of the NAV of the pledged fund(s) |
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Eligibility Criteria of HDFC Bank Loan Against Mutual Funds
Stated below are the eligibility criteria for availing loan against mutual funds digitally from HDFC Bank:
- An applicant should be a holder of an HDFC Bank Savings Bank Account having a single mode of operation
- The applicant should have HDFC net banking User ID and password
- The applicant should have holdings in Mutual Funds with CAMS as the Transfer Agent. The eligible Asset Management Companies as per the bank’s website are listed below:
- Aditya Birla Sun Life Mutual Fund
- DSP Blackrock Mutual Fund
- HDFC Mutual Fund
- HSBC Mutual Fund
- Tata Mutual Fund
- ICICI Prudential Mutual Fund
- IDFC Mutual Fund
- Kotak Mahindra Mutual Fund
- L&T Mutual Fund
- SBI Mutual Fund
- Single holder of a Mutual Funds with CAMS
Documents Required for availing HDFC Loan Against Mutual Funds
HDFC Bank provides loan against mutual funds 100% digitally and therefore no documents are required for availing this facility.