How to Get a Digital Loan Against Mutual Funds with CAMS?

When it comes to creating your investment portfolios, mutual funds have become a favourable option for most investors. They offer a wide range of investment vehicles to choose from as per one’s requirements, in addition to help customising a strategic plan to meet financial end goals.

Adding to the list of benefits, is the Loan against Mutual Funds. In the event you need quick funding, without liquidating any of your assets, you can easily apply for a loan against your existing mutual funds. 

While this facility has existed for a considerable time, it was only available after approaching the bank and would take around 5 to 6 days to be processed. 
As a first of its kind, HDFC Bank offers Digital Loans against Mutual Funds (LAMF), in partnership with transfer agent CAMS. HDFC Bank customers can now access this facility online, with funds available in the account in just under 3 minutes. This is also available to customers who currently hold assets in at least one of the mutual fund houses registered with CAMS. These mutual funds houses constitute about 60 percent of the total assets under the management of the mutual fund industry.

To apply for this Digital LAMF with CAMS, you need to:

Step 1: Log in to myCAMS via HDFC Bank's NetBanking portal and select which mutual funds you want to pledge from your portfolio 
Step 2: Click on loan terms and conditions 
Step 3: Input one-time password (OTP) and the overdraft will be ready to use in your account in under 3 minutes

When applying for an online LAMF with CAMS you can:

  • Borrow up to 50% of the value of the MF holding, with an interest rate of up to 11%
  • Apply for a minimum amount of Rs. 1 Lakh, and a maximum limit of Rs. 10 lakhs for equities and Rs 1 crore for debt mutual funds
  • Apply for the online LAMF with CAMS during working hours, namely 9 Am to 7 Pm only

To apply for the online LAMF with CAMS, click here.