Loan on Mutual Funds – A Quick Introduction!

In India, many people invest in many investment schemes. One of the prudent investment plans available in today’s time is none other than the mutual funds.

Investing in mutual funds not only helps your money make more. But it also aids to secure capital for future expenses and goals. The ROI on mutual funds is governed by the market conditions, and you may get higher or lower one. If you want to see your money grow, you need to be patient with the mutual funds’ investment.

On the other hand, if you have an investment in a mutual funds scheme and facing some urgent need for money, you may choose to liquidate it. It may affect your investment purpose, and you end up with a lower fund than estimated.

A better option, in this regard, is taking a loan on mutual funds. This way, you may not only get some money to cover the needs but even stay invested for future gains.

These days, you can find many leading banks and non-banking finance companies (NBFCs) offering you the loan on mutual funds. The loan against mutual funds interest rate is competitive, and you can manage its repayment without issues.

Here is a quick introduction to the benefits of applying for the loan on mutual funds.

A quick look at some loan on mutual funds benefits

• You get to borrow up to Rs.10 crore

By opting for the loan on mutual funds, you can easily get up to Rs.10 crore to fund your diverse needs. The loan against mutual funds is offered at an affordable rate. Hence, you can manage its repayments without stressing your budget.

• Easy eligibility and minimal documentation

Availing the loan on mutual funds from banks and NBFCs is easy. With easier eligibility and hassle-free documentation, you can grab the loan easily. After proving your eligibility for the loan on mutual funds, you will need to submit some documents to go through the application and get the money.

• Hassle-free application process and quick disbursal

You should not worry and keep waiting for the loan approval. Once you get the loan approval and complete the formalities, the amount gets disbursed super easy.

• Flexi loan feature

You don’t have to use your entire loan and pay an EMI based on it. You get the freedom to borrow an amount as per your needs and pay just the interest as EMI. The remainder of the loan balance is settled after the end of the tenor.

• Zero prepayment and foreclosure charges

Leading banks and NBFCs let you make some prepayments towards your loan account and even foreclose it before the scheduled tenor. What’s more, you do not have to pay any charges for availing the facility.

• Relationship Manager

The lenders also let you avail of the services of the dedicated Relationship Manager. You can contact them 24/7 and get all queries related to the loan resolved.

How to Apply for Mutual Funds

Step 1 – Go to the lender’s website and land on loan on mutual funds webpage. Once there, fill an online application form.

Step 2 – You will then receive a confirmation mail and text message to help you know the loan application status.

Step 3 – The representative will collect the required documents to take the process further.

Step 4 – After documents verification, you will get the desired loan amount in your bank account.

The loan on mutual funds is surely a smart idea to get a large amount without liquidating the assets. If you are ready, you can apply for it online!