HDFC Bank Launches Loan Against Mutual Funds
One of the Country’s top private sector bank HDFC has launched Loans Against Mutual Funds in association with CAMS (Computer Age Management Services is a Mutual Fund Transfer Agency), which controls 65% of the market share.
For now HDFC has approved credit limits of Rs 10,000 crore on the loans against mutual funds (MFs) and insurance policies.
Loan Against Mutual Funds
A customer who wants to avail loan against the mf should at least have a minimum of 2 lakh rupees in his portfolio, and can borrow up to 50% of the value of his/her MF holdings in both the debt and equity segments with an interest rate of 11%.
One should avail loan minimum of Rs 1 Lac and maximum of Rs 10 Lacs.
And also customer needs to have a savings account with the HDFC bank to avail the loan and fill few forms as well to get a loan approval.
The approved amount reflects in a specially created current account as an overdraft and the interest charges start with the draw-down.
LAMF Processing fee
Processing fee for Loan Against Mutual Funds is Rs 1499 as an introductory offer.
To avail the LOAN AGAINST SECURITIES – MUTUAL FUNDS Go to HDFC Bank Site -> Apply Now Tab and look for Loan Against Mutual Funds Link.
or visit this link directly https://apply.hdfcbank.com/dapweb/las#! and follow instructions.
or via below process:
Log in to myCAMS via HDFC Bank website and select which mutual funds they would like to pledge from their portfolio
Click on loan terms and conditions
Input one-time password (OTP) and overdraft will be ready to use in their account
Note: HDFC Bank Digital LAMF is available against both debt and equity mutual funds. LAMF Digital Loans against Mutual Funds is available for resident of Indian and for portfolios that are individual holdings.