Get Instant Loan Of Rs 1 Crore Against Your Mutual Funds Via ICICI Bank – This Is How It Works

Get Instant Loan Against Your Mutual Funds Via ICICI Bank - This Is How It Works
Get Instant Loan Against Your Mutual Funds Via ICICI Bank – This Is How It Works

The ICICI Bank has announced a launch of a new facility where retail customers will be able to get loans of up to Rs. 1 crore. 

The scheme will be called Insta Loans against Mutual Funds, and it does not require the customers to visit the bank or submit any physical documents either.

Find out all the details about ICICI Bank’s new project right here

ICICI Bank Launches Insta Loans against Mutual Funds: Get Loan Up To Rs. 1 Crore

The ICICI Bank has launched an ‘Insta Loans against Mutual Funds’ which will operate in partnership with ‘Computer Age Management Services’ (CAMS). This new venture is an extension of the Insta LAS, which is an instant loan facility against equity shares, and was launched by the bank over a year ago.

Under this scheme, customers can now get a loan of up to Rs. 1 crore by pledging their holdings in both debt and equity mutual funds. This is a digital and paperless facility enabling the customers to avail the loan as an overdraft in only a few minutes. They wouldn’t be required to even visit a bank or submit any physical documents. 

Rajesh Iyer, Head- Wealth, Private Banking and LAS, ICICI Bank expressed in a press release, “We are happy to partner with CAMS for this facility to provide complete digital access for loans against mutual funds to our customers.”

In this facility, customers will be given access to instant liquidity, and all they need to do is leverage their existing mutual funds without selling them. The loans can also be availed against a wide range of debt and equity schemes of mutual funds that are serviced by the CAMS and approved by the Bank. 

The minimum loan amount is Rs. 50000 for both debt and equity schemes, whereas, the maximum loan amount is Rs. 1 crore for debt schemes of MFs and Rs. 20 lakh for equity schemes of MFs.

There will be a minimum of 20% competitive margin for debt and 50% for equity mutual funds.

As the loan is available as an overdraft customers will not be required to pay any EMI. Only be required to pay interest on the utilized limit and for the day that it was utilized.

Customers will be given the flexibility to repay the principal whenever they want to, and there will be no foreclosure charges.

How To Avail Loan Against Mutual Funds In ICICI Bank

To avail the loan by ICICI Bank, here is what you need to do:

  1. Login to ICICI internet banking.
  2. Go to ‘Investment & Insurance’ and click on ‘Loan against Mutual Funds’
  3. Verify the pre-required eligibility and select the type of mutual fund
  4. You will then be redirected to the CAMS portal, where you should select the mutual fund scheme and the number of units. Next, confirm the request through OTP authentication.
  5. Next, confirm the loan amount and commercials of the loan on the ICICI bank internet banking platform. You will also be required to complete FATCA and accept the terms and conditions.
  6. You will then receive an OTP on the mobile number registered with the bank. After this, the OD account and its limit will be specified. 
  7. You can immediately start using the funds after this whole process is completed.

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