ICICI Loan Against Mutual Fund
Last Updated : April 14, 2020, 3:51 p.m.
ICICI Bank offers a wide range of banking products and services to add new customers and retain existing clients. Of the products and services ICICI Bank offers, a loan against mutual funds is one of them. So, if you have invested in mutual fund schemes of ICICI Asset Management or any other, you can be eligible for the loan. You only need to see whether the mutual fund comes under the list of approved securities under ICICI loan against mutual fund. You can check the list on the official website of ICICI Bank. If you find it in the list, this page is for you!
ICICI Loan Against Mutual Fund Interest Rate & Other Info
| Loan Aspects | Details |
|---|---|
| Interest Rate | Depends on the market rate |
| Loan Amount | Upto 50% of the Net Asset Value (NAV) Minimum - INR 50,000 Maximum - INR 20,00,000 |
| Processing Fee | INR 3,500 or 0.50% of the loan amount, subject to a minimum of INR 5,000 |
| Prepayment Charges | NIL |
How Will the Interest Apply to ICICI Loan Against Mutual Fund?
The effect of interest depends on how the loan is disbursed. ICICI Bank disburses loans against mutual funds as an overdraft. So, the interest is payable only on the utilized amount and not the entire sanctioned limit. A current account will be set up for the said purpose. The interest is payable via credits to the account.
Who is Eligible to Apply for ICICI Loan Against Mutual Fund?
This will depend on the type of mutual fund units you have with you. Loans against Equity and equity-oriented hybrid funds can be given only to individuals. Whereas, loans against debt funds, fixed maturity plans (FMPs) or Exchange Traded Funds can be given to individuals, Hindu Undivided Families (HUFs), Sole Proprietors, Companies and Partnership Firms.
How to Check the List of Approved Securities?
Above, there’s a slight mention of it. Let’s just go through the steps to find the list of approved securities.
- Visit the official website of ICICI Bank
- Navigate to ‘ICICI Loan Against Securities’ page
- Go to the ‘More’ icon and click on ‘Approved List of Mutual Funds’
- A file will open enlisting various mutual funds across equity and debt categories
- See whether the fund where you invest is there in the list or not
Documents Needed
Below are the documents needed to apply for ICICI Loan against mutual funds.
- Identity Proof – PAN Card/Voter ID/Driving License/Passport/Aadhaar Card
- Residence Proof – Voter ID/Driving License/Passport/Aadhaar Card/Electricity Bill/Telephone Bill
- Income Proof – Salary slips for the last 3 months & bank statements for the last 6 months showing the credit of salary
- Income Tax Return, audited balance sheet and profit & loss account for the last 2 years (Self-employed)
- Mutual fund account statement
How to Apply for ICICI Loan against Mutual Fund?
You can apply for the loan online as well as offline. Let’s check out both online and offline applications.
Online Application
- Go to the official website of ICICI Bank and then on to ‘Loan Against Securities’ page
- Navigate to ‘More’ and then click on ‘Application Process
- Click on ‘Apply Now’
- A form will form, take out its printout and fill the details correctly and hand it over to the concerned official of any of the ICICI Bank branches.
- The official will also ask for the relevant documents
- Submit the documents and get your application processed
Offline Application
- Visit any of the ICICI bank branches with your documents
- Ask for the loan against securities form and fill the details correctly
- Subsequently, hand the form as well as the documents to the bank official to process your loan application
- Once the details get verified successfully, you’ll get the loan disbursement
How Can You Raise Your Loan against Mutual Fund Queries at ICICI Bank?
You can raise your queries by dialing the customer care number – 1860 120 7777. So whatever the queries are, be it related to the loan amount, payment or any other, feel free to share your concerns and get them addressed by the ICICI customer care executive.