LMAF FAQs
Below are the FAQs you must go through to know about general questions on Loan Against Mutual Funds(LMAF)
Frequently Asked Questions
Loan against mutual funds (LAMF) allows you to borrow cash against your mutual fund investments as collateral. You can use Volt Money to lien mark your mutual funds digitally to avail an instant limit without losing the ownership of your mutual funds and all the associated benefits with it. Funds will be made available in the form of a credit line. You can utilize the required amount and repay anytime without any prepayment charges. Interest is charged only on the utilized amount and for the duration the funds are utilized. You can select from a list of 4500+ approved mutual funds from different asset management companies (AMCs) in India. You can lien mark mutual funds registered with both CAMS & KFintech, Registrars & Transfer Agents (RTAs). We recommend digital loan against mutual funds to meet any of your financial requirements like travel, gadget purchase, balance transfer for your high interest loans, medical emergency.
To be eligible for loan against mutual funds with Volt Money, you should be between 18 and 65 years of age.
Your entire mutual fund portfolio eligible for loan against mutual funds, should not be less than ₹50,000.
Loan against mutual funds is available for mutual funds approved with CAMS & Kfintech (RTAs). Debt & ELSS funds (units held greater than 3 years) are also eligible for loan against mutual funds.
Loan against mutual funds is also available for joint holdings with AS / ES (anyone survivor / either or survivor) mode of holding.
To avail loan against mutual funds, you should be an Indian resident.
There is no minimum credit score and income requirement for loan against mutual funds.
You can choose to set up a credit line amount ranging from Rs. 25,000 to Rs. 1 crore for loan against mutual funds with Volt Money.
Yes! You read it right, you can avail a credit line up to Rs.1 crore digitally in 5 minutes.
Yes, you have the freedom to choose when you want to repay. The loan against mutual funds credit line facility provides 100% flexibility for principal repayment in. After the month ends, only the interest needs to be repaid.
No, you do not have to pay interest on the complete line amount for a loan against mutual funds. Volt Money provides complete flexibility for the customer, and interest is only charged on the amount used. Interest is calculated daily based on the loan outstanding at the end of each day. Let’s look at a couple of scenarios to explain:
- If the loan amount at the end of the day is zero, no interest will be charged for that day.
- If an amount is withdrawn, used, and repaid within 10 days, you will only be charged interest for the 10 days of utilization.
The entire process is 100% digital, so there is no requirement for any physical documents for loan against mutual funds. To ensure a smooth and quick processing, please have the following information handy:
Debit card or net banking details for setting up the mandate.
PAN card number
Email ID associated with CAMS and KFintech (for mutual fund verification)
Bank account details for account verification and receiving the loan amount
When you opt for a loan against your mutual fund units, Volt Money digitally lien mark/pledge your mutual fund units in the favor of the lender. This ensures that the units cannot be redeemed or sold until the loan amount is repaid. The lien marking process is conducted entirely digitally and in real-time for loan against mutual funds.
You can change your email/mobile number though MFCentral. Steps to change email/mobile number:
- Sign up at MFCentral
- Put a service request.
- MFCentral will update the email/mobile number on your behalf within 1-2 days.
Loan against mutual funds is available for more than 4500+ mutual funds offered by various asset management companies (AMCs) in India through Volt Money. However, please note that tax saving fund units with a date of purchase less than 3 years (not matured) are not eligible for the loan.
Volt Money only requires your PAN, mobile number, and registered email ID to check eligible amount available against your mutual fund portfolio. This verification is conducted right after signing up in the journey, ensuring transparency and keeping you informed about the loan details throughout the process.
No, Volt Money provides a seamless experience to check loan amount available against your mutual fund portfolio. You don’t need to upload any documents.
Volt Money offers complete flexibility when it comes to choosing the mutual fund units you want to lien mark for setting up the loan limit. You have the freedom to change the schemes and units according to your preferences and create your own allocation for lien marking.
You have the flexibility to request the removal of lien from your mutual fund units at any time, provided there is no pending loan amount against them. Depending on your current loan amount and utilization, you can choose to remove the lien from specific mutual fund units or from all the units you have pledged.
At Volt Money, interest rates range from 9% to 13%, depending on the borrower’s credit profile. The processing fee starts from ₹499 and can go up to ₹1999, depending on the loan amount and applicable state stamp duty.
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