LAMF- Loan Against Mutual Funds

Once your loan is sanctioned and the Mutual Funds are lien marked/pledged in favour of the Bank, the credit limit will be set in your Overdraft Account which you can start using.

If your Mutual Fund price drops then your overall credit limit may decrease, which in some cases may lead to your account becoming overdrawn in case your outstanding balance becomes more than the revised credit limit. In that case, you can either lien/pledge more Mutual Fund units which will increase your credit limit or repay the excess amount that you have withdrawn to regularise the account. Please note that penal charges may be applicable on the overdrawn amount till the account is regularised.

You can release your Mutual Funds after repaying the amount which is due to the Bank or if you have a surplus limit available in your account which allows the Mutual Funds to be released.

Yes, you can make a part prepayment of the amount utilised from the limit anytime, without incurring any charges.

Interest is calculated on the daily outstanding balance and will be debited/charged to the LAS Account on the 2^nd working day of every month for the entire interest period.

Since it is an Overdraft facility, the interest is applicable only on the limit utilised and for the number of days it is utilised.

Yes, ICICI Bank offers loans secured by Mutual Funds. You can apply online for this loan.

The rate is 10.50% - 11.50% per annum if you take a Loan Against Mutual Funds from ICICI Bank.

You can borrow up to 50% of the Net Asset Value (NAV) of the pledged Mutual Funds.

Note:

• The minimum loan amount is ₹ 50,000.
• The maximum loan amount is ₹ 20 lakh for Equity Mutual Funds
•  For digital applications for a Loan against Debt Mutual Funds, the maximum loan limit is ₹ 1 crore. For branch or offline applications, there is no upper limit, subject to credit approval.