Business Loan
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Loan Against Security
Loan Against Property
| Loan Amount | ₹100,000 |
| Interest % | 8 % |
| Tenure (months) | 12 |
| Emi (monthly) | ₹ 8,699 |
| Total Interest | ₹ 4,386 |
| Loan Amount + Interest | ₹ 104,386 |
| Year | Total Principal ( A ) | Total Interest ( B ) | Balance ( A + B) | Total Payment | Loan Paid Till Date (%) | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ₹ 49,005 | ₹ 3,189 | ₹ 52,194 | ₹ 50,995 | 49.00 % | |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||
| ₹ 50,997 | ₹ 1,197 | ₹ 52,194 | ₹ 0 | 100.00 % | |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||
There are times in life when you could encounter unanticipated financial difficulties, such as medical emergencies, family bills, etc. There is frequently a pressing need for cash or use your savings in such circumstances. Even in these circumstances, there are better lending alternatives. One option is to take out a loan against your mutual funds.
You can avoid cashing out or redeeming your investments by obtaining a loan against mutual funds. Loans secured by securities allow you to raise the money you need swiftly. Depending on the length of the loan, interest is assessed on the amount used. Depending on the bank and tenure, interest rates on loans secured by mutual funds will range from 7 to 15% per year. You may get loan against mutual funds from banks and NBFCs in India.
Let’s move ahead and know about the loan against mutual funds in a more detailed way:
Key Highlights of Loan Against Mutual Funds
If you apply for a loan on mutual funds, you can only secure a limited amount as loans against mutual funds have upper limits.
The minimum limit for loans against mutual funds is Rs. 5 lakhs, and the maximum is Rs. 2 crores.
The interest rate for loans against securities starts at 10.5%.
Eligibility – Debt and equity funds are eligible for a loan.
When you take a loan against mutual fund units, these mutual fund units stay invested in the market. The banks can sell the mutual funds only in case of a default in payment.
Loans are available to customers with no or bad credit history.
The loans on mutual funds will be processed instantly. Funds will be available within minutes in your bank account.
The type of mutual fund schemes you have invested in and the financial institution from which you will borrow determine the amount of a loan against MF you will receive. When requesting a loan against securities, the mutual fund units are used as security. Until the loan obligations are paid off, the banks will retain custody of the mutual fund units as collateral. However, the mutual funds will continue to remain invested. The fund house will release the lien to the financier after the loan has been repaid.
In the event of a payment default, the bank will strengthen the lien and direct the mutual funds to redeem the units, settling the mutual fund investor's value against the debt.
Advantages of Loan Against Mutual Funds
It’s important to know about the advantages of a Loan Against Mutual Funds before you apply for one:
You can apply for loans online and get them right away. You don't have to go through laborious procedures and spend your time. You can get a loan by following a few easy steps. You will instantly receive the loans by pledging your mutual fund units and establishing an overdraft limit.
By crediting your loan account once a month, you can pay interest. Only the loan amount you use will be subject to interest.
In contrast to other forms of borrowing money, a loan secured by mutual funds can be claimed quickly.
Loans secured by mutual funds have lower interest rates than personal loans do.
If you want to get a Loan Against Mutual Funds, then make sure you follow the below steps:
Create a loan agreement from the lending agency.
Transform the physical units into electronic ones.
You can apply for the loan online through your internet banking account.
The loan processing will begin once your application has been successfully validated.
The bank providing the loan will request that a lien be placed on the number of units pledged by the mutual fund registrar.
The registerer sends a letter confirming the lien with a copy to the borrower.
Eligibility for a Loan Against Mutual Funds
The following is the eligibility for the loan against mutual funds:
Indian Residents
NRIs
If you are a major (above 18 years of age).
If you own a Partnership firm, Private Trust, Private or Public company.
Own a mutual fund.
Hence, verifying the loan against mutual fund eligibility is essential to examine if the candidate fits the criteria.
You just need to follow 4 simple steps to get your loan:
Step 1: Visit the official website of Upniva.com
Step 2: Enter your full name and phone and generate OTP to start the lending process.
Step 3: Please fill out the form and submit the necessary documents to complete the KYC..
Step 4: Sit & wait, as your loan will be disbursed into your account within a few hours.
Moreover, for hassle-free loan approval, you can always count on us as we are here to assist you in getting your loan approved within seconds.
Indeed, a loan against MF is a better option than personal loans as it has fewer eligibility requirements, needs no credit score, and is easy to repay.
A lien is a legal document that grants the bank the authority to sell or hold the money. As a result, by signing a claim in the bank's name, you transfer ownership of the fund units you possess to the bank. Each unit owner must sign the letter requesting the lien transfer.
Many online portals will rapidly approve loans if you have approval in advance and have units in the Demat form. You can always give a heads up to referloan for getting a loan against MF.
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