How to Apply for Loan Against Mutual Funds?

Did you know that you can actually make your Mutual Funds work for you? Now you can avail loans online, in the form of overdraft, against your Mutual Fund securities. Here’s how you can do it.

What do you need?

  • Your bank should be registered with the Mutual Fund registrar, so this facility can be offered.
  • You should have online banking facility.
  • Log in access to CAMS (Computer Age Management Services) or Mutual Fund registrar’s portal.

Step by step guide to apply for a Digital Loan against Mutual Funds

  • Open your bank website.
  • Key in your NetBanking credentials
  • Click on the Demat button.
  • Click on the Request option.
  • Select Loan Against Securities
  • Via NetBanking, log into your CAMS account
  • Select the Mutual Funds that you want to pledge
  • You will receive a One Time Password to activate the facility.

Read more on how to apply for an HDFC – CAMS Loan against Mutual Funds.

What are the benefits of taking a Digital Loan against Mutual Funds?

  • Fund availability
    This is a hassle free and quick way to have funds available in your account when you need it for emergencies or any other need
  • Get it from anywhere
    You can secure the loan against Mutual Funds from anywhere and everywhere.
  • Fully digital
    You do not need to rush to the bank branch anymore and push your way through endless amount of paper work.
  • You need to pay interest only on the amount of loan utilized.
  • High loan to value
    You can get up to 80% of the value of the pledged securities as the loan amount.
  • Wide range of securities
    The scheme allows loan against Mutual Funds (equity and debt). 50% of net asset value in case of equity funds can be pledged and up to 80% of the net asset value in case of debt funds.

Want to apply for a Digital Loan against Mutual Fund? Click here to get started!

* Terms & conditions apply. Digital Loan against Mutual Fund disbursal at sole discretion of HDFC Bank Ltd.