SBI Loan against Mutual Fund


  • Shall you apply for an SBI loan against mutual funds?
  • Take the decision based on the loan quantum, interest rate, etc.

Feeling annoyed after being denied a personal loan? Well, you can get a loan against mutual fund units and fulfill your imminent needs. Banks like State Bank of India (SBI) can offer you a loan against a mutual fund with a handsome loan amount and attractive interest rates. Let’s talk more about the offer on this page.

SBI Loan against Mutual Fund Interest Rate

Loan AspectsDetails
Interest Rate10.40% Per Annum
Loan QuantumUpto INR 20 Lakh (Equity Funds)
Upto INR 5 Crore (Debt Funds)
Loan Tenure5 Years
Processing Fee0.75% of the loan amount
Annual Review/Renewal ChargesINR 1,000
Foreclosure FeeNIL

Note – Fees & charges will also include the applicable 18% Goods and Services Tax (GST).

An Overview on SBI Loan against Mutual Fund

Mutual funds are broadly classified into equity, debt and hybrid funds with different asset allocations and risk grades. Equity funds, which invest in the high-risk, high-return proposition of equities, can fetch you a maximum of 50% of the investment value. Debt funds, which invest mainly in fixed income instruments such as bonds, debentures and money-market instruments, can give you a maximum loan at 80% of the investment value. The loan against equity-oriented hybrid funds, which invest around 60%-65% in equities and the rest in debt instruments, can be a maximum of 50% of the investment value. Debt-oriented hybrid funds, which invest around 60%-65% in debt instruments and the remaining in equities, can grant you a loan of as much as 80% of the investment value.

How Will the Loan Work Out for You?

The investment value will differ from time to time as it is subject to market movements. The price of mutual fund units is denoted by the Net Asset Value (NAV), which changes each trading day based on the market movement. By the time the bank is about to sanction you a loan, it will check the investment value by multiplying the number of units bought so far with the prevailing NAV. For example, if the NAV of the fund is INR 450 and the number of units accumulated so far is 1000, the investment value will be INR 4, 50,000. In case the investment value pertains to equity and equity-oriented hybrid funds, the maximum loan amount will be INR 2,25,000. Whereas, for debt and debt-oriented hybrid funds, you can get as much as INR 3,60,000.

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SBI Loan against Mutual Fund EMI Calculator

As the loan is repayable via Equated Monthly Installments (EMIs) for the time you choose to service the debt, an idea of the installment in advance can be of a big help. It will help you plan your budget more realistically. So you must use the SBI Loan against Mutual Fund EMI Calculator, which considers the loan amount, tenure and interest rate to ascertain the monthly installments. You could also check the amount of interest payable over the loan tenure.

Documents Required

You can submit the following documents to get a loan against mutual fund units.

  • Identity Proof – PAN Card (Mandatory)
  • Residence Proof – Passport/Aadhaar Card/Voter ID/Driving License/Electricity Bill/Telephone Bill
  • Income Proof – Salary Slips for the last 3 months, latest Form 16 (Salaried) and Last 2-3 Years Income Tax Return (ITR) (Self-employed)
  • Mutual fund statement & latest passport size photographs

How to Apply for SBI Loan against Mutual Fund?

Anyone over 18 years of age can apply. It’s up to you to choose from either online or offline modes. For online applications, you can visit the official website of SBI and do so. Mention your personal and professional details correctly and submit the form along with the scanned documents. The bank will send a representative to pick the documents from your residence or office. Once the details are verified successfully, you’ll get the loan. You can even visit the nearest SBI branch with the necessary documents to apply for the loan. However, not all branches are authorized for this service. You can check the list of eligible branches on the page of SBI loan against mutual funds online. Plus, you can check the approved list of SBI mutual fund schemes for which the loan is available.

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SBI Loan against Mutual Fund Statement

You can check the loan against the mutual fund statement online. Yes, you can use the net banking access of SBI to access the statement. The statement will show you the repayment you’ve made so far. Both your principal and interest repayments till date will be shown along with the outstanding balance left to pay.

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