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LAMF- Loan Against Mutual Funds

Get the Loan as an Overdraft
Pay interest only on the utilised amount and only for the utilised period
Get High Loan-to-Value (LTV) ratio
Loan is given against approved Equity and Debt Mutual Funds that are registered with CAMS (Computer Age Management Services).

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Reason To Choose ICICI Bank For Loan Against Mutual Funds

Loan Value

In case of Equity Mutual Funds, loan up to 50% of the Net Asset Value (NAV) with a maximum limit of Rs. 20 lakh and in case of Debt Mutual Funds, up to 80% with no maximum limit, can be availed.

Exclusive facility

The facility is available exclusively for select ICICI Bank account holders having Mutual Fund holdings in individual capacity.

Long-term retention

Long-term retention of Mutual Funds portfolio without liquidation.

Interest rate

Interest is charged only on the utilised amount and for the utilised time period.

Disbursement

End-to-end paperless disbursement.

Loan Amount

Maximum loan of Rs. 20 lakh and Rs. 1 crore can be availed for Equity and Debt Mutual Funds respectively.

Steps to apply for digital Loan
Against Mutual Funds

Internet Banking
iMobile

01. Log into Internet Banking
02. Go to: Cards & Loans > Loans > Loan Against Mutual Funds
03. Select the type of Mutual Fund for lien marking
04. Enter additional information and provide FATCA details
05. Calculate your final Loan amount
06. Access funds through your new Overdraft Account.

Loan Against Mutual Fund through Internet Banking

01. Log into iMobile
02. Go to: Get Instant Loans / Offers > Loan Against Mutual Funds
03. Select the type of Mutual Fund for lien marking
04. Enter additional information and provide FATCA details
05. Calculate your final Loan amount
06. Access funds through your new Overdraft Account.

Loan Against Mutual Fund through IMobile

Advantages of Loan Against Mutual Funds

Here are a few advantages of availing a Loan Against Mutual Funds:

High Loan-to-Value (LTV) ratio: If you take a Loan against Equity Mutual Funds, you can get up to 50% of the Net Asset Value (NAV) as the overdraft limit. With Debt Mutual Funds, this limit increases up to 80%.
Convenient and easy access to funds: A major advantage of availing a Loan against Mutual Funds is the convenience and easy access to funds. You can instantly pledge your Mutual Fund units to activate the Overdraft facility and withdraw the required funds in no time, subject to eligibility.
Low interest payment: The interest rate on these loans is attractive, significantly reducing the interest amount and the total loan cost. Since it is an Overdraft facility, you pay interest only on the amount used and for the number of days it is used.
No fund liquidation required: One of the biggest advantages of taking a Loan Against Mutual Funds is that you don’t need to liquidate your Mutual Fund investments. You can avail an Overdraft facility against the Mutual Fund units, while staying invested in them for the long term.
Capital appreciation: Investors opting for Loan Against Mutual Funds can enjoy potential capital appreciation of Mutual Funds while pledging them for a Loan.

Eligibility Criteria, Documents Required and Interest Rates

Eligibility for Loan Against Mutual Funds

Age: 18 - 75 years
Contact Information: A working mobile number and e-mail ID
Equity Mutual Funds: Only individual applicants qualify. Partnerships, Corporations and HUFs are not eligible
Debt Mutual Funds: Available to Partnerships, Single Proprietors, Businesses, HUFs, and Individuals
Approval: Dependent on credit evaluation and whether Mutual Fund is part of ICICI Bank’s approved list of Funds.

Documents Required

Recent passport-sized photograph
Aadhar Card, Passport, Driving License or Voter ID as Address Proof
PAN Card for identification
Signature verification (PAN Card, Passport or Banker’s verification)
Original Mutual Fund / Demat holding statement
Bank cheque for processing
For non-individuals, standard KYC documents and financial statements such as audited Balance Sheets or Net Worth Certificates, might be required.

Digital Loan Against Mutual Funds is also available for select customers. The entire process is online, with minimal documentation required. This facility can be availed through Internet Banking or the iMobile app by select customers, against ICICI Bank-approved Equity and Debt Mutual Funds registered with CAMS (Computer Age Management Services).

Interest rates and charges

When you avail of a Loan Against Mutual Funds, you get an Overdraft facility up to a certain amount as per the Net Asset Value (NAV) of the Funds pledged. You have to pay interest only for the amount utilised and for the utilised period. The interest calculation takes place daily and is debited from the Overdraft Account at the end of each month. Here is an overview of the applicable interest rates and charges:

Description	Charges
Interest Rate	10.50% - 11.50% per annum
Processing Charges (Non-Refundable)	Up to 2% of the borrowed amount
Renewal Charges (Non-Refundable)	₹ 2,500 per annum (plus GST)
Sale of Securities (on Customer’s Request)	₹ 5,000 plus applicable taxes and brokerage
Penal Charges (Delay / Default)	5% of the withdrawn amount per annum (plus taxes)

Notes:

The specific interest rate applicable to a customer is dependent on the segment and asset category.
ICICI Bank reserves the right to revise the Rate of Interest and Processing Fee from time to time, at its sole discretion.

Loan Against Mutual Funds FAQs

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What is the tenure of a Loan Against Mutual Funds?

ICICI Bank Digital Loan Against Mutual Funds (MF) provides a loan repayment tenure of one year with the option of renewal based on the performance of the Overdraft Account after the initial year.

Which funds are accepted under a Loan Against Mutual Funds?

The Mutual Funds present in ICICI Bank’s approved list of Mutual Funds are accepted.

What is the interest payment cycle for a Loan Against Mutual Funds?

The interest calculation takes place daily and is debited from the Overdraft Account at the end of each month. Here is an overview of the applicable interest rates and charges:

Description	Charges
Interest Rate	10.50% - 11.50% per annum
Processing Charges (Non-Refundable)	Up to 2% of the borrowed amount
Renewal Charges (Non-Refundable)	₹ 2,500 per annum (plus GST)
Sale of Securities (on Customer‘s Request)	₹ 5,000 plus applicable taxes and brokerage
Penal Charges (Delay / Default)	5% of the withdrawn amount per annum (plus taxes)