Why Choose Blue Sky for Loan Against Mutual Funds?
In partnership with Mirae Asset Financial Services, we offer a unique financial solution that allows your
investments to work harder and smarter. By choosing our offering, you enjoy a seamless digital process, secure transactions,
and the certainty of partnering with a trusted name in the investment field. Your path to instant liquidity is just a click away!
For further information, please refer to our FAQ section. Please also review the T&C of this offering prior to applying.
Get LAMF Limit Online Within Minutes
No need to wait for days. Complete 6 simple steps to get an
overdraft limit against mutual funds within minutes
using
the MAFS mobile app. Your application will be
processed
instantly to
provide you with a limit within minutes.
Zero Foreclosure Charges
No lock-in & no foreclosure charges if you decide to repay your
outstanding's early.
You can make payment towards your
outstanding amount anytime with zero foreclosure
charges.
Instant Disbursal
MAFS provide access to funds whenever you need them. Get the required amount credited directly to your provided bank account on the same day.
Large List of Approved Securities
Select from a large list of approved mutual funds from different asset management
companies (AMCs) in India. You can lien mark mutual funds registered with both CAMS &
KFintech (earlier known as KARVY),
Registrars & Transfer Agents (RTAs).
100% Digital Process
No need of visiting branches or reaching out to relationship managers.
With the MAFS mobile app you can complete your entire journey online
from
your mobile device without any need of submitting physical
documents.
Retain Ownership
Allow your mutual funds to achieve long-term goals.
You continue to retain ownership of your mutual
funds and reap all the
benefits that are associated
with it.
Attractive Interest Rate
Avail loan at an attractive Interest rate starting 9.5% p.a (on utilized
amount) with flexi
payment option. Unlike term loans, interest
on LAMF is levied only on
the amount you use and for the number of
days you utilize.
Loan Tenure
The overdraft limit provided against your mutual
funds has a tenure of 12 months and is
renewed
thereafter.
Higher Loan Value
One place for all your financial requirements. With MAFS you can
get
a higher limit up to Rs 1Cr in case of equity mutual funds (45%
LTV)
and up to Rs 3Cr in case of debt mutual funds (80% LTV).
Easy Repayment
Higher Loan Amounts AvailableManage your funds with more flexibility. You are required to service the interest amount accrued as per utilization on a monthly basis.
How to Apply
FAQs
A Loan Against Mutual Funds is a secured loan where borrowers pledge their mutual fund units as collateral to secure a loan from banks or Non-Banking Financial Companies (NBFCs). This serves as a convenient short-term credit solution that caters to urgent financial needs without liquidating mutual fund investments.
Mirae Asset offers an attractive interest rate of 9.5% p.a. Certain charges like processing fees and stamp duty apply. For comprehensive details, please refer to the "Charges" section in our Terms & Conditions.
Indian citizens aged 18 to 75 years with a credit score of 500 or more, or new to credit, can avail a loan against mutual funds. A single PAN card can have up to 2 loan accounts, one each against equity and debt mutual funds.
Corporates, HUFs, and NRIs cannot avail Loan Against Mutual Funds.
The security list is reviewed monthly, and a large basket of mutual funds is covered, including open-ended schemes of all AMCs with a scheme AUM of INR 20 crores or more.
ELSS, Children Funds, Retirement Funds, Franklin Templeton, and Navi Mutual Fund schemes are not currently considered for loans. Mutual Funds held under joint holding (Except Either or Survivor) are also not eligible for pledging.
The pledging process with mutual funds RTAs - KFintech & CAMS, is digitally executed and usually takes around 15 minutes (subject to all documents being submitted online).
The ownership of the securities remains with the holder (the Borrower). They continue to receive potential capital appreciation and dividend income. However, the securities cannot be sold while they are pledged.
Yes, you can digitally release a partial lien using the Mirae Asset Financial Services app/web.
LTV or ‘Loan-to-Value’ is a ratio that lenders use to determine the maximum amount they are willing to lend to a borrower
based on the value of the collateral (in this case, equity and/or debt mutual funds) that is being used to secure the loan.
For loans against equity mutual funds:
1. Minimum loan amount: INR 10,000
2. Maximum loan amount: INR 1 crore,
3. LTV: 45%
For loans against debt mutual funds:
1. Minimum loan amount: INR 10,000
2. Maximum loan amount: INR 3 crore,
3. LTV: 80%
Yes, you can make withdrawals in tranches of INR 50 lakhs. You can process the next tranche once the "Withdrawal Request" status is completed.
The disbursal window is from 8:00 am to 5:00 pm, except on bank holidays. Withdrawals request will
be accepted but requests will be processed the next day.
Also, withdrawals are happening on bank holidays with conditions.
Ensure that you have net banking and/or debit card access for the bank account mentioned while creating the bank mandate. Most major banks are part of the e-Mandate, but cooperative banks are currently not included.
Terms & Conditions
By availing Loan Against Mutual Funds, you consent to our Terms & Conditions. These include:
- Withdrawals can be made in tranches of INR 50 lakhs. The next tranche can only be processed once the "Withdrawal Request" status is completed.
- The loan disbursal window operates from 8:00 am to 5:00 pm, except on bank holidays.
- When creating a bank mandate, ensure you have net banking and/or debit card access for the mentioned bank account. Major Banks are part of the e-Mandate, Co-operative Banks are currently not included.
- Interest is automatically collected every 3rd of the month via NACH. Borrowers will receive a notification on the 1st of the month to maintain a sufficient balance.
- Mobile number and email address can be changed online post loan creation.
- Any interactions for Loan Against Mutual Funds will be between the borrower and Mirae Asset Financial Services. Blue Sky will only guide on leveraging this option and will not be liable for any issues arising from this arrangement.
- Margin Call
a. Securities are revalued every day.
b. The loan outstanding more than the revised limit is considered “Overdue”.
c. Borrowers are informed via email about drop-in limits and/or overdue if any.
d. If mutual fund value drops, then the borrower can-
- add additional securities by top-up, or
- pay cash, or
- combination of both
| Equity Mutual Funds LTV | Debt Mutual Funds LTV | No. of days to regulate |
|---|---|---|
| > 45% | - | 75 days |
| > 50% | > 80% | 7 days |
| > 55% | > 85% | 5 days |
| > 60% | > 90% | 3 days |
| > 65% | > 95% | 1 day |
Charges
| Charges | Value | Charged at the time of |
|---|---|---|
| Rate of Interest | 9.5% p.a | Monthly ECS |
| Processing Fees | INR 999 + GST | Loan Creation |
| Stamp Duty | INR 500 | Loan Creation |
| Renewal Fees | INR 999 + GST | After 1 year, post Borrower confirmation |
| Partial Unlien | INR 500 + GST | At the time of request execution |
| Top-up | INR 500 + GST | At the time of request execution |
| Foreclosure | N/A | N/A |
| Prepayment | N/A | N/A |
| Penal Interest rate | ROI + 4% p.a. | At the time of Default and/or Overdue |
| Bounce charge | INR 500 + GST | At the time of Default |
| Security invocation fees | INR 2000 + GST | At the time of Default |
| Bank Mandate Swap | INR 500 + GST | At the time of request execution |
| Collection fees | INR 5000 + GST | At the time of Default |
| Legal fees | INR 5000 + GST | At the time of Default |