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Piramal Enterprise 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 2 crores |
| Tenure | 1 year |
| LTV Ratio | As per the applicant’s credit profile |
| Type of Facility | Flexi Loan (similar to overdraft facility) |
| Prepayment/Foreclosure Charges | NIL |
Rates updated as of 7 November 2024
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Piramal Loan Against Mutual Funds Interest Rates
Piramal Enterprise has not mentioned interest rates for its Loan Against MF. The interest is charged from the Piramal LAMF borrowers on a monthly basis. The principal amount as a bullet repayment at the end of the loan tenure. Moreover, the borrower has to pay interest only on the amount drawn and not on the sanctioned limit.
Fees & Charges of Piramal Loan Against Mutual Funds
Piramal Enterprises does not levy any foreclosure or prepayment charges on its LAMF borrowers. However, the NBFC has not disclosed any information about other charges. Prospective borrowers can visit the NBFC’s branches to know more about other LAMF-related charges like processing fees, penal charges, renewal charges, etc.
Features of Piramal Loan Against Mutual Funds
Purpose
Prospective borrowers can use the loan proceeds of Piramal LAMF for financing any personal or business purposes or meeting fund shortages without liquidating their mutual fund investments. The loan facility is offer in the form of flexi loan, similar to the overdraft facility, wherein the borrower can avail disbursals in one or more tranche(s) from the sanctioned limit. This allows borrowers to withdraw money as per their requirements.
Tenure
The NBFC offers loan against mutual funds for 1 year. Borrowers can renew their loan facility 2 times for 1 year each.
Loan amount
Prospective borrowers can avail loan against mutual funds ranging from Rs 50,000 to Rs 2 crores. There is no limit to the number of mutual fund schemes that can be liened as collateral for obtaining the limit. However, the limit is provided against the approved scripts only.
Interest Calculation and Loan Repayment
- The interest is calculated on the basis of the daily outstanding balance. The interest will be debited from the LAMF loan account on the last working day of each month.
- The interest component is charged only on the loan amount drawn and for the tenure it is used.
- The interest payments are due on or before the 5th of each month
- A monthly notification will be sent to the customer detailing the interest due. The interest will be collected via ECS (Electronic Clearing Service). Borrowers should note that the repayment by cheque is not accepted.
- The interest component has to be paid on a monthly basis while the principal amount has to be repaid at the end of the loan tenure.
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Eligibility Criteria of Piramal Loan Against Mutual Funds
Stated below are the eligibility criteria of availing loan against mutual funds from Piramal Enterprises:
- Salaried applicants, self-employed professionals and self-employed non-professionals are eligible to avail loan against mutual funds
- Individual applicants should be between 21 years to 65 years of age
Documents Required for availing Loan Against Mutual Funds
Piramal LAMF borrowers are not required to provide any financial documents for loans up to Rs 1 crore. For loans above Rs 1 crore, NBFC has not explicitly stated the documents required for availing loan against mutual fund. Prospective borrowers can visit the Piramal branches for detailed information about documentation process.