Maximize Your Investment – SBI Loan Against Mutual Funds

What is SBI Loan Against Mutual Fund ?

The SBI loan against mutual fund can be availed by SBI customers by offering their mutual fund to bank as a security and get funds out of it. These loan is extremely helpful incase of immediate cash requirements.

The minimum loan amount is Rs. – 25000/- and  maximum can be upto Rs. – 5 crore against equity and debt of Mutual Fund.

You need not have to sell any mutual fund it can be availed instantly. The best part of availing this loan is that you will continously get returns from mutual fund even during the loan period.

Important Key Features of SBI Loan Against Mutual Fund

• No need to sell your mutual fund while taking loan against MF.
• No need to visit any branch or submit any documents.
• Interest will be charged only if the loan amount will utilised.
• You can avail this loan against debt/FMP/equity mutual fund.
• You can apply for loan24*7
• Immediate sanction facility available.
• Attractive interest rate starts from  11.50% P.A.
• Loan upto Rs. 10 lacs can take with the ROI (rate of interest) of 10.10%
• Complete digital process no need of pay EMI by your own pace.

How to Apply for SBI Loan Against Mutual Fund

Get a Loan in Less than 10 Minutes by Following These Simple Steps:

• Log in to your State Bank of India Internet Banking (INB) portal, visit the official website, or open the YONO SBI app.
• Navigate to the Loans section and select “Loan Against Mutual Fund Units.”
• Verify and confirm your credentials.
• Choose the mutual fund units you wish to pledge.
• Check and calculate your eligible loan amount.
• Carefully read and accept the terms and conditions for lien marking on the selected mutual fund units using OTP authentication.
• Once the lien is successfully marked in real time by Computer Age Management Services (CAMS), your Overdraft (OD) account will be opened.

Eligibility Criteria for SBI Loan Against Mutual Fund

• The individual should have Indian citizen and at least 18 years and above age.
• SBI saving/current bank account which should be opertated by single person.
• Individual should have SBI net banking user along with user ID and password since it is processed digitally.
• Individual should have valid mobile and uodated E-mail ID with bank record.
• The saving bank account and mutual fund should have identical name with PAN number.
• If joint account holder wants to apply can take only from registerd branch.

Note – For market linked securities like mutual fund of SBI will be considered the current market value of fund.

 Benefits of SBI Loan Against Mutual Fund

• SBI online loan against mutual fund is a general purpose, granted to individuals.
• This loan will be sanctioned subject to mortgage purpose not for the sales scheme of mutual funds.
• Loan sanctioned less than 10 minutes through OD account.
• Other than SBI customer may also take such loan offer opening a saving bank account.
• This loan is available or registered with CAMS under 20 Mutual Fund Companies including SBI Mutual Fund.
• You may use your funds through YONO app and Internet banking, however cheque book facility is also availble.
• Account closure facility also available in both Internet banking and YONO app, however sufficient funds should be maintain by customer.
• You will get lower interest rate than unsecured personal loan.
• You do not have to worry about any disturbance while your fixed deposits continue earning interest without interruption.

Note – SBI accepts a diverse range of securities, making it easier for ou to unlock the value from virtually any investment you hold.

ROI (Rate of Interest) of SBI Loan Against Mutual Fund

Particular	1 Year MCLR	Spread over 1 Year MCLR	Effective ROI

Loan Against Mutual Fund

8.70%

1.25%

9.95%

Note – ROI 125 bps above 1 year MCLR and interest will be charged only on utilized amount.

Other miscellaneous charges of SBI Loan Against Mutual Fund

Margin Money – margin money will be charged 50% of equity and share debt/EMP/MF is 25%

Preocessing Fees – .50% of the loan amount + applicable GST and maximum of rs.- 5000+applicable GST.

Re-newal Charges – Re-newal charges (yearly) rs. 1000 + applicable ST (service tax), as of now renawal is available through physical channels as well.

Stamp Duty – Stamp duty and other statutory charges as per applicable laws of the states.

Documentations

• As KYC not to be submitted for existing customer, however relevant documents if there is updation or any change from existing details need to be submitted along with application.
• Application form fully filled.
• Passport size photograph.
• Proof of identity – PAN & Aadhar
• Latest statement of account issued by SBI funds management ltd. Indicating details of unit held.
• Investors request for lien marketing declaration.

SBI Loan Against Mutual Fund Units List

1 Aditya Birla Sunlife AMC Limited 2 DSP Investment Managers Private limited 3 HDFC Asset Management Company Limited 4 HSBC Asset Management (India) Private Limited 5 ICICI Prudential Asset Management Company Ltd 6 Bandhan Mutual Fund 7 360 ONE Asset Management Ltd 8 Kotak Mahindra Asset Management Company Limited 9 Mahindra Asset Management Company Pvt Ltd 10 PPFAS Asset Management Private Limited 11 SBI Funds Management Pvt Ltd 12 Shriram Asset Management Company Limited 13 Tata Asset Management Limited 14 Union Asset Management Company Private Ltd 15 White Oak Capital Asset Management Limited 16 Franklin Templeton Asset Management (India) Pvt Ltd 17 Navi Asset Management Ltd

Conclusion

Loan against mutual funds are the best option to get immediate funds its offer lower rate of interest which is lesser than unsecured loan. This funds can be used for personal expenses, business requirements or any emergency situation these loans are quite helpful.

The beauty of this loan is simple. Your investment will safe and you may get access returns out of it, as soon as loan will complete you will get your assets back under full control.