You can take a loan against your mutual fund units. The loan amount can also range from Rs 50,000 to Rs 3 crore.
Loan Against Mutual Funds: If you invest in mutual funds then it has a big advantage. You can take a loan against your mutual fund units. The loan amount can also range from Rs 50,000 to Rs 3 crore. This loan can be taken on all mutual fund schemes investing in equity and debt. Mirae Asset Financial Services, a non-banking financial company, has introduced one such product. The company has introduced an online mobile app through which one can avail Loan Against Mutual Funds within minutes. The facility of taking loan against mutual funds already exists. Many banks and NBFCs are offering loans against the amount invested in mutual funds. Its method is also very easy.
as overdraft facility
This loan will be made available as an overdraft facility. Customers can withdraw the required amount through the mobile app whenever and wherever they want. On applying, that amount is directly transferred to the customer’s bank account on the same day. The app can be installed directly from the Android or iOS App Store.
How to get loan?
To avail loan against mutual fund units, you have to enter into a loan agreement with a bank or NBFC. Under this, the units of your mutual fund are pledged. Then banks or NBFCs give loans in lieu of it. Loan is given to you based on the market value of the units. In the application process, mutual fund units are marked in favor of the bank or NBFC. These are called ‘marking of lien’. Once the lien is marked, investors cannot sell or encash these units until the loan is over.
Liquidity within 15 minutes
Krishna Kanhaiya, CEO, Mirae Asset Financial Services says that we want to make our mark in the lending business. For this, the company has launched a mobile app where customers can raise liquidity within 15 minutes. Swarup Mohanty, Director, Mirae Asset Global Investments (India), says that the objective of our move is to ensure that customers have instant access to their funds when needed. It also helps the clients to manage their finances better as it is a good option to meet their immediate needs and continue investing for long term goals.