Tata Capital Loan Against Mutual Funds Highlights |
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Interest rate | 8.00%-20.00% p.a. onwards |
Loan Amount | Up to Rs 40 crores (Up to Rs 5 crores for digital applications) |
Tenure | 1 year |
LTV Ratio | 50% to 70% of the market value |
Processing Fees | Up to 5% of the sanctioned loan amount |
Prepayment/Foreclosure Charges | NIL |
Annual Maintenance Charges/ Renewal Charges | Up to 5% of the loan amount |
Additional Pledge/lien creation charges | NIL |
Rates updated as of 7 November 2024
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Tata Capital Loan Against Mutual Funds Interest Rates
While the interest rates of Tata Capital LAS start from 8.00% p.a. onwards, the NBFC has not mentioned specific interest rates for its LAMF Scheme. The interest rates are based on the type of securities pledged as collateral.
Product | Interest Rates (p.a.) |
Loan Against Securities | 8.00%-20.00% |
Fees & Charges of Tata Capital Loan Against Mutual Funds
Processing Fees & Other Charges
Product | Charges |
Processing Fees (Non-refundable) | Up to 5% of the sanctioned loan amount |
Document Processing Charges | NIL |
Pledge/Lien creation charges | Rs 999 |
Stamp Duty (in Rupees) | At actuals |
Prepayment/Foreclosure Charges | NIL |
Collection Charges | NIL |
Legal Charges | At actuals |
Repossession Charges/Liquidation Charges | 0.35% of sale consideration + brokerage applicable |
Annual Maintenance Charges/ Renewal Charges | Up to 5% of the loan amount |
Additional Pledge/lien creation charges | NIL |
Penal Charges
Product | Charges |
Default in payment of amounts due as per the Facility Documents | 36% p.a. (3% per month) on the overdue amount |
Non-creation of security | NIL |
Dishonour of any cheque/
payment instruments |
Rs. 600 per instrument per instance |
Mandate Rejection | NIL |
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Features of Tata Capital Loan Against Mutual Funds
Purpose
Prospective borrowers can use the loan proceeds of Tata Capital LAMF for financing any personal or business purposes such as business expansion, personal expenses, medical emergencies or other financial commitments. This would save the investors from redeeming their mutual fund investments.
Tenure
Tata Capital offers loan against mutual funds for 12 months tenure with a renewal facility
Loan amount
Tata Capital has not mentioned the loan size for the LAMF facility offered through offline channels. However, the bank has specified the maximum and minimum loan limit for its digital loan applications. Further, borrowers can also increase their drawing power by pledging more securities in the same loan account. The drawing limit depends on the type of the mutual fund schemes (i.e. equity or debt oriented) pledged by the borrower. Tata Capital claims to update the drawing power within two business days.
Collateral | Loan Amount |
Loan Against Securities | Rs 75,000 to Rs 40 crores |
Loan Against Mutual Fund (Digital) | Rs 25,000 to Rs 5 crores |
LTV Ratio
The NBFC offers an LTV ratio ranging from 50% to 70% of the market value of the concerned mutual fund
Collateral
Tata Capital LAMF borrowers can pledge their own securities or those of their blood relatives (parents, children, spouse and siblings only) who are over 18 years of age. If pledging securities belonging to someone other than the borrower, the security holder must be a signatory to the Revolving Credit agreement as a Co-Applicant.
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Eligibility Criteria of Tata Capital Loan Against Mutual Funds
Tata Capital has not explicitly stated the eligibility criteria for loans against mutual funds. Prospective borrowers should visit Tata Capital branches for detailed information on eligibility and application procedures.
Documents Required for availing Tata Capital Loan Against Mutual Funds
Stated below are the basic documents required for individuals, proprietorships, companies, partnerships/LLPs, trusts and HUF for applying for a loan against mutual funds from Tata Capital:
- ID Proof: Aadhaar Card/Driving Licence/ Passport/Voter ID
- Address Proof: Aadhaar Card/Passport/Voter ID/Driving Licence
- Signature Proof: Passport/PAN card/Banker sign verification
Apart from the basic documents mentioned above, here is the breakdown of the different documents required for various applicants for a loan against a mutual fund application:
For Individuals:
PAN Card is also required for availing Tata Capital loan against mutual funds
For Proprietorship:
Besides the above basic documents mentioned, any two of the following are also required, provided the document contains the address:
- Registration Certificate
- VAT/CST/GST Certificates
- Certificate or license issued by the Municipal authorities under Shop & Establishment Act
- Income Tax Return in the name of the sole proprietor with Firm Income
- Income and Sales tax returns
For Partnership/LLP:
- Partnership Deed
- PAN of the partnership firm
- LLP Resolution (if LLP)
- Registration Certificate (only in case of registered Partnership Firms)
- Authority Letter from Partners
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For Companies:
- PAN of the Company
- Memorandum of Association (MoA) & Articles of Association (AoA)
- Certificate of Incorporation
- Board Resolution
For Trusts:
- Registration Certificate
- PAN Card of Trust
- Trust Deed
- Trust Resolution
For HUFs:
- Hindu Undivided Family Letter (Annexure 2) signed by All Co-parceners
- CA Certified Letter confirming all Co-parceners
- PAN Card of HUF
- HUF Authorisation letter signed by All Co-Parceners
- Bank Statement of HUF as an Address Proof