#Loans&Advances
Loans & Advances
Our Loan Offerings
Finacrest offers an exclusive 9.99% p.a. interest rate and a minimal processing fee for loans against your mutual fund savings through our internal tie-up. Say goodbye to the need for selling your investments to cover short-term financial needs. You'll only be charged interest on the amount you utilize, allowing you to access funds precisely when you need them
Through our strategic partnership with HDFC Bank, we provide comprehensive Home Loan services. If you're in the market for a new home, let us simplify the process for you. Instead of navigating the complex world of home loan requirements independently, choose the reliability of our trusted partner. We ensure that you'll benefit from competitive rates and top-tier services, all delivered in a transparent and straightforward manner, making your home-buying journey a seamless and worry-free experience
Thanks to our partnership with Nuvama Wealth, we can extend loans secured by your stocks and bonds. The interest rate is tailored to the specific loan amount, ensuring a personalized approach to your financial needs. For in-depth information about these offerings, feel free to reach out to us, and we'll be happy to provide you with all the details you require.
Loan Against MF
Frequently Asked Questions
A Loan against Mutual Funds (LAMF) is a loan facility offered by financial institutions where you can pledge your mutual fund units as collateral and borrow funds against them.
Most financial institutions accept both equity and debt mutual funds for LAMF, but the eligibility criteria may vary from one lender to another.
The amount you can borrow typically depends on the Net Asset Value (NAV) of your mutual fund units and the lender's policy. Usually, you can borrow up to 50-70% of the NAV.
The interest rate for LAMF can vary depending on the lender, the loan amount, and market conditions. It's usually lower than personal loan interest rates. The rate offered by us is 9.99% p.a. Interest is charged on reducing balance method.
The interest will be charged on a monthly basis directly from you bank account.
If there is a default on interest payment the units of MF pledged will be sold only to the extent of interest amount recovery.
The loan tenure can vary from lender to lender, but it typically ranges from 1 year to 5 years.
Your credit score may not be a significant factor in obtaining a LAMF since the mutual fund units act as collateral. However, it may still be considered by the lender.
If you default on the loan, the lender has the right to sell the mutual fund units that you pledged as collateral to recover the outstanding amount.
Usually, you can't redeem the mutual fund units pledged as collateral until the loan is fully repaid. The lender has a lien on these units.
Loans against mutual funds are not considered taxable events, as you are essentially borrowing against your own investments. However, it's advisable to consult with a tax advisor for personalized advice.
Lenders may charge processing fees, documentation charges, and other applicable fees. It's essential to understand the fee structure before availing the loan.
Whether LAMF is a better option than selling mutual fund units depends on your financial goals, the cost of the loan, and your tax situation. Consider consulting a financial advisor for personalized advice.
Yes, your mutual funds can continue to generate returns while they are pledged as collateral, but these returns won't be accessible until the loan is repaid.
Happy Customers
Years of Experience
