Mutual Fund Instant Loan: This loan gets you without redeeming mutual funds. Under this, you deposit mutual funds in a bank or financial institution like security. Which means that loan is found on mutual funds. After the loan payment is completed, you can get the mutual funds back again. Let’s know the details about it.
How much can I get a loan?
The lending amount depends on its type when taking the next loan of mutual funds.
If there is an equity fund, 50 percent of its value will be found as a loan. This is less because this fund is more risky.
Dear Fund and Hybrid Fund will get August 70 to 75 percent loan. Because these are low -risk funds. The stock market fluctuations in debt and hybrid funds are low.
The interest rate on taking a loan through mutual funds is 10 to 12 percent. However, it depends on the bank and the financial institution.
How to apply?
Step 1- Go to the website of the most bank or financial institution.
Step 2- After logging into the bank, you will get the option to take the next loan of mutual funds here. If this option is not available, it means that your bank is not giving this service.
Step 3- Submit the information and document after this.
Step 4- Many banks take details related to direct mutual funds through CAMS and KFINTECH.
Step 5- After this you have to select the funds that want to take the next loan.
Step 6- Then all the information related to the loan will be revealed in your screen such as interest rate, loan period, amount, EMI tenure, processing fees etc. If you agree with all these, click on submit.
Step 7- Finally your money will come into account. Keep in mind that only after the loan payment is completed, you will be able to take back the mutual funds again.