Kotak Mahindra Bank Loan Against Mutual Funds

Kotak Mahindra Bank Loan Against Mutual Funds Highlights
Interest Rate	8%-11% p.a.
LTV Ratio	Equity Mutual Funds- Up to 50% of Current Net Asset Value Debt Mutual Funds- Up to 85% of current market value
Type of Loan Facility	Overdraft
Tenure	1 year (renewable annually)
Processing Fee	Rs 50 – Rs 1,000 depending on the loan amount

Rates as of 17th October 2024

Interest Rates of Kotak Mahindra Bank Loan Against Mutual Funds

While the interest rates of Kotak Mahindra Bank LAS start from 8% p.a. onwards, the bank has not mentioned specific interest rates for its LAMF Scheme. The interest component is charged only on the amount drawn and not on the sanctioned limit.

Minimum Interest Rate	8.00% p.a.
Maximum Interest Rate	10.00% p.a.

Loan Overdraft Charges

Minimum Interest Rate	8.50% p.a.
Maximum Interest Rate	11.00% p.a.

Kotak Mahindra Bank Loan Against Mutual Funds Fees and Charges

Particulars	Charges
Renewal Fee	For Non-Insurance Cases- Rs 3,500 For Insurance Cases- Rs 5,000
Processing Fee	Rs 50-Rs 1,000 depending on the loan amount
Demand Draft/Banker’s cheque	Payable at branch locations- Free 25 DD/BC per month; thereafter 1/1,000 (Min 40 Max 5,000) Payable at non-branch locations- 2/1,000 (Min 40 Max 5,000)
RTGS	Through Branch- Rs 15/txn Through Net Banking- Free
NEFT	Through Branch- Free Through Net Banking- Free
Fund Transfer	Branch and Net Banking- Free
Cash Deposits	At home branch location- Free up to 2 lakh per month; thereafter 2.5/1,000 At non-home branch location- 4.5/1,000; Min 50 per txn
Cash Withdrawal	From home branch location- Free From non-home branch location- 2/1,000; Min 50 per txn
AQB Non-maintenance	NIL till Loan Against Securities limit is availed; 900 per quarter thereafter
Account Closure Charges	NIL
Balance Statement	Rs 100
Interest Statement	Rs 100
Confidential Report	Rs 500
TDS Certificate	Rs 200
Photo attestation	Rs 300
Signature Verification	Rs 100
Paid cheque Report	Free
Solvency Certificate	Rs 10,000
Credit Confirmation	Rs 500
PIN Regeneration	ATM/Phone/Net Banking- Rs 50
DD/BC Cancellation	Rs 100
ECS Return	Rs 300
Cheque Purchase Charges	0.5/1,000 per day
Foreign Currency Conversion Charges	Rs 100
Penal Charges	8% p.a.
Mutual Fund pledge charges for CAMS pledged digitally	Rs 700
Partial release of mutual funds	Rs 50 per request
Benchmark change charges	Rs 10,000
Rate reduction charges	Rs 3,000

Features of Kotak Mahindra Bank Loan Against Mutual Funds

Purpose: Applicants can use their Kotak Bank LAMF proceeds to finance their personal and business requirements. Thus, the applicants can fulfil their financial needs without compromising their existing mutual fund investments.

Overdraft Limit: Kotak Mahindra Bank opens a current account in the name of the borrower into which a sanctioned overdraft limit is set. The overdraft limit depends on the value and quantity of securities pledged with the bank.

LTV Ratio: The LTV ratio offered against equity and debt mutual funds is mentioned below:

Collateral	LTV Ratio
Equity Mutual Funds	Up to 50% of Current Net Asset Value
Debt Mutual Funds	Up to 85% of current market value

Tenure: Kotak Mahindra Bank offers Loan Against Securities as an overdraft facility for tenure of 1 year that is renewable yearly.

Margin Call Requirement: If the market value of mutual funds pledged as collateral with Kotak Mahindra Bank reduces, the eligible overdraft limit will also reduce. As the amount utilized from overdraft account exceeds the revised eligible limit, the difference between the eligible limit and utilized limit becomes overdue. If the borrower fails to clear the overdue payment or pledge additional mutual funds as collateral, the bank shall sell the pledged mutual fund units.

Eligibility Criteria for Kotak Mahindra Bank Loan Against Mutual Funds

• Applicants should be salaried or self-employed Indian residents.
• The age of the applicant should be 18 years and above.
• Non-resident individuals or NRIs are eligible for funding against equity and debt mutual funds held in the name of the borrower.
• Non-individuals entities such as limited liability partnership, proprietorship concerns, partnership firms, HUF, private limited, limited companies are eligible for funding against debt securities.

Documents Required for availing Kotak Mahindra Bank Loan Against Mutual Funds

• Duly filled application form of Loan Against Securities.
• Self-attested bank statement for last 3 months.
• Self-certified ITR for last 2 years.
• Self-attested mutual fund statement.
• Surrender value report for insurance.
• In case of equity, Client Master List for relevant Demat Account.