Loan Against Securities

Best option to meet short term requirement
while keeping long term goals intact
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Now avail Loan against Securities (LAS) from the comfort of your home

Most investors tend to build long term portfolios by investing in mutual funds. In case of unexpected requirement, they often get confused whether to raise funds or liquidate their existing investments.

Liquidating existing investment will hinder long term financial plan and if liquidated it will become difficult to rebuild the portfolio.

The best way is to opt for LAS to meet your immediate funding needs without having to sell your investments. LAS offers an opportunity to monetize the investments while continuing to retain and earn returns on your investments.

Avail Loan against Securities (LAS) from the comfort of your home
What is Loan against Securities?

What is Loan against Securities?

Loans against Securities is a type of an overdraft facility wherein you need to pledge mutual fund units as collateral and get the loan ranging from Rs.2 lacs to 10 crores. To meet your immediate fund requirement LAS is the best option rather than selling your existing investment.

You don’t have to provide any additional security or collateral except the securities you are pledging!

How does LAS work?

Loan against Securities are typically offered as an overdraft facility wherein you draw money from the account anytime you want (up to the sanctioned amount), and you need to pay interest only on the loan amount you draw and for the period you use it.

For example, your LAS has been sanctioned for Rs. 5 lacs. Now let’s say, you draw Rs 1 lacs and after 20 days you deposited the amount back into your loan account. In this case, interest will be charged on Rs.1 lac for 20 days.

The amount of loan you are eligible for depends on the value of the securities you offer as collateral

How does LAS work?

Reasons why Loan against Securities is the right choice for you

Quick Access to Finance
Quick Access to Finance

Pledge your MF units and get the instant loan to meet your financial requirements without liquidating your investments

Interest on Utilization
Interest on Utilization

One of the biggest benefits of LAS is that interest is charged only on the amount withdrawn and for the time period it is being utilized.

Retention of ownership
Retention of ownership

LAS facilitates you to reap benefits that come from your investments as you still enjoy the ownership of mutual fund units.

Zero part-payment and foreclosure charges
Zero part-payment and foreclosure charges

As there are no prepayment and foreclosure charges you can repay your loan at your convenience.

Other features of LAS offered by us

Higher sanction amount
Higher sanction amount

Get higher amount of loan sanctioned on the same value of investment (max up to 3 times of the eligible amount of loan).

Easy Withdrawal
Easy Withdrawal

Request withdrawal from your loan account and get the money credited into your bank account as and when it is required.

Online Access of Loan Account
Online Access of Loan Account

Manage your loan account anytime and from anywhere from your login id on FundzBazar

Eligibility

In order to apply for a Loan against Securities, you must meet
the following eligibility criteria:

  • Loan will be available in the name of Primary holder only
  • Applicant must be a resident citizen of India
  • Applicant must be in the age group of 18 to 70 years
  • This facilities is not available to HUF, NRIs & Minors
  • Loans are granted only against the list of approved Mutual Fund/scheme

Documentation

  • Passport size photograph
  • Loan agreement duly signed
  • NACH mandate duly signed
  • Cancel cheque leaf
  • Loan sanction letter duly signed
  • Pledge request letter duly signed

Additional documents required: (If applicant is cKYC non-compliant)

  • Self-attested ID Proof (Pan Card OR Driving License OR Aadhaar)
  • Self attested Address Proof (Aadhaar Card)

Interest Rate

Loans against Securities come to you at an attractive interest rates as given below. This rate may vary from time to time.
Loan Sanction Amount Interest Rate
2 Lakhs - 15 Lakhs 11%
>15 Lakhs - 1 Crore 10.75%
>1 Crore - 10 Crore 10.50%

Charges

Processing Fees

Rs.500 or 0.10% whichever is higher + Taxes

Documentation charges

Nil

Foreclosure Charges

NIL

Pre-payment Charges

NIL

FAQs

It is the best option to meet short term fund requirement while keeping long term goals intact. LAS offers an opportunity to monetize the investments while continuing to retain and earn returns on your existing investments.

  • Loan will be available in the name of Primary holder only
  • Applicant must be a resident citizen of India
  • Applicant must be in the age group of 18 to 65 years
  • This facilities is not available to HUF, NRIs & Minors
  • Loans are granted only against the list of approved Mutual Fund/scheme
  • Passport size photograph
  • Loan agreement duly signed
  • NACH mandate duly signed
  • Cancel cheque leaf
  • Loan Sanction letter duly signed
  • Pledge request letter duly signed
Additional documents required: (If applicant is cKYC non-compliant)
  • Self-attested ID Proof (Pan Card OR Driving License OR Aadhaar)
  • Self-attested Address Proof (Aadhaar Card)

Applicant can foreclose the LAS facility any time after the completion of 1 month from the date of initial loan disbursement by paying the outstanding loan amount.

Yes, applicant can make part payment on the outstanding loan any time they want.

Yes, applicant can foreclose the LAS by paying the outstanding loan amount.

There are no part payment or foreclosure charges

Portfolio is revalued on daily basis. Applicant will receive IVR (Interim Valuation Report) on his/her registered email id daily.

The only cost involved in case of LAS is the processing charge of Rs.500 + Taxes upto Rs.5 lakhs of loan sanction amount and more than Rs.5 lakhs it is charge of 0.10% + Tax of loan sanction amount and that too is charged at the time of 1st disbursement. There are no charges on sanctioning of loan.

LAS will get sanctioned immediately within few minutes on completion of the sanction process.

The loan will get processed within 4-5 working days after the documents have been received by the financer.

Minimum sanction amount for loan is Rs.2 lacs

Yes you can create partial pledge on the existing mutual fund units

In case of LAS, NACH mandate will be in favor of the financer wherein interest amount will get debited every month from your bank account.

ID proof and address proof is required only when you don’t have CKYC number. In case of LAS, it is mandatory that applicant is CKYC compliant.

Sanction amount can be max 3 times the eligible amount of the portfolio or units selected.

Loan sanctioned will be valid for 2 years and after the completion of 2 years it has to be renewed.

Minimum amount for initial disbursement is Rs.25000. Initial disbursement of Rs.25000 is mandatory and will be automatically disbursed. Minimum amount for additional disbursement is Rs.1000 and in multiples of Rs.1000.

Investor is required to send email on las.crm@bajajfinserv.in. and cc mark to las@fundzbazar.com for foreclosure of loan and release pledged securities.

No. Only FundzBazar investor can apply for LAS.

As of now applicant can avail LAS only against Mutual Fund units.

Applicant can repay the loan in 2 ways

Part Payment – Applicant can make payment against outstanding loan amount. It should be minimum Rs.1000 and in multiples of Rs.1000. Loan account will remain active.

Foreclosure – Applicant has to compulsorily pay the outstanding loan amount & interest. Loan account will get closed once payment has been made.

Yes. A customer will be able to release the pledged units on the same after repaying the loan amount to the effect that the margin is maintained as per requirement.

Approximately it will be T+3 working days.

Loans are granted only against the list of approved Mutual Fund/scheme. Mutual fund schemes like close ended funds, ELSS funds which are still locked in cannot be pledged. Click here to download the list of eligible mutual fund schemes.

Minimum sanction amount for Top up loan is Rs. 1 Lakh and multiples of Rs. 1000.

  • You can make part payment directly from your registered bank account with FundzBazar. Bank details of the financier is as given below:
  • Name of A/c Holder : Bajaj Finance Ltd
  • Bank Name : HDFC Bank Ltd
  • A/c No. : 00070350007680
  • IFSC Code : HDFC0000007
  • Branch Name : Law College Road Branch, Bhandarkar Road, Erandwane, Pune - 411004