ICICI Launches Insta Loan Against Mutual Funds – Access Up To 1 Cr Online
ICICI Bank has launched Insta Loan against Mutual Fund with Computer Age Management Services (CAMS). With this new instant secured loan product, the customers can borrow instant contactless loans up to Rs 1 crore against their debt and equity mutual funds. Amidst COVID 19 hit economy, this fully-digital and paperless loan facility will be really handy to avail of fast loan/ overdraft. The customer need not visit the bank branch or submit physical documents for this product.
The “Insta Loans against Mutual Funds” is an extension of Insta LAS (Loan Against Shares) that was introduced by ICICI Bank last year. So, ICICI customers can now leverage their mutual fund holdings to get access instant funds online.
Insta Loans against Mutual Funds: Product Highlights
Instant Disbursal: Using this facility, MF holders can now get instant access to funds and enjoy liquidity without disrupting their mutual fund portfolio.
Flexibility: The investors have flexibility to avail loan against a range of debt and equity mutual funds. The funds should be serviced by CAMS and approved by the Bank.
Quantum of Loan: The loan is available for a wide range and customers can choose according to their needs. The minimum of Rs. 50,000 can be availed against debt and equity schemes of MFs; while the maximum available loan amount is Rs. 1 crore for debt funds and Rs. 20 lakh for equity funds.
Competitive margin: The competitive margin for debt funds is the minimum of 20 percent and for equity MFs it is 50 percent.
No fixed EMI/ OD Benefits: The loan is available as an overdraft product against your securities and thus you do not need to pay a fixed EMI. You are liable to pay only interest amount on the limit utilised, that too for the period it is being utilised.
No foreclosure charges: You can repay principal without any foreclosure charges.
Steps to avail ICICI Insta Loan against Mutual Funds
- Log in & access ICICI Bank internet banking
- Go to the section ‘Investment & Insurance’
- Now click on ‘Loan against Mutual Funds’
- You can also check out the pre-qualified eligibility.
- Select the type of mutual fund.
- Now you will redirected to CAMS portal. Choose mutual fund scheme and number of units. An One-Time Password (OTP) authentication will be conducted.
- Now Confirm loan specifics on bank site. Complete FATCA & accept T&Cs.
- Use OTP received and to access the OD account instantly. You can immediately start using the funds after the successful completion of all the above steps.
✅ What is Insta Loan against Mutual Funds?
ICICI Bank has launched Insta Loan Against Mutual Funds under its Loan Against Securities segment. The loan can borrowed completely digitally and in a paperless manner. The product is launched in partnership with Computer Age Management Services. Customers can avail loan up to 1 crore against their approved equity and debt mutual funds.
✅ What are eligibility criteria for Insta Loan against Mutual Funds?
The Loan against Mutual Funds are currently available as ‘pre-qualified’ option to ICICI bank savings account customers only. It can be accessed though internet banking. Besides, the customer should be a resident Indian having mutual funds registered with CAMS.
✅ What is loan quantum available as Insta Loan against Mutual Funds?
The minimum of Rs 50,000 can be borrowed. However the maximum limit can go up to Rs 20 lakh against equity mutual funds and up to Rs 1 crore against debt mutual funds.
✅ What is the LTV\ Margin on Security for LAS?
The Loan is available for up to 50% of the Net Asset Value (NAV) for equity mutual funds and up to 80% for debt mutual funds.
✅ What are the rates of interest and charges with LAS?
The rate of interest on ICICI Bank LAS will be 9.90% p.a. for equity mutual funds and 9.40% for debt mutual funds. Processing fees is nominal at Rs 500 + GST. The Renewal fees will be Rs 2,500 + GST.
✅ What will be Home Branch for LAS Account?
The Loan Against Shares/ Mutual Funds will have same home branch as your ICICI Savings Account. However you will get option to use services at any of the branches.
✅ What are operational hours for Insta Loan against Mutual Funds?
You can open Insta LAS digitally and thus you can apply on all days of the week. You can access instant facility during 8:00 a.m. to 7:00 p.m on all 7 days, from Monday to Sunday. On public holidays and bank holidays the facility will not be available.
✅ How to apply for Insta Loan against Mutual Funds?
You can apply for instant Loan against Mutual Funds by following simple steps online. Access Internet Banking by logging on to official website. Now click on ‘Investment & Insurance’ and select ‘Insta Loan Against Mutual Funds.’ The option is available for preapproved customers only. Select the type of mutual funds and confirm the request at CAMS portal. A One-Time Password authentication will be started. Accept terms and conditions and enter OTP. The loan OD account will be instantly opened. Now post confirmation of lien marking and the limit will be set. You can use funds as required.
✅ How is the interest calculated for Mutual Fund Loan?
As the loan is offered as OD, the Interest will be calculated on daily outstanding balance and charged on last working day of the month.
✅ What would be the frequency of mutual funds evaluation?
Every Friday evaluation will take place. The revaluation for limit will be based on current NAV of the mutual funds.
✅ What is the loan tenure for Loans against Mutual Funds?
The OD is offered for one year. After one year, request to close the account should be submitted with the nearest bank branch. The customer can renew if required.
✅ Is there any approved list of mutual funds for loan facility?
For list of approved securities of loan, visit official ICICI website.