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Capital Markets - Loan Against Mutual Fund Units
 
 


Loan Against Mutual Fund Units
 
Loans are provided against open-ended mutual fund units to investors, Members of Stock Exchanges, Corporates and Trusts. Lien is created in favor of ABFL on the MF units held by the borrower on the following terms: 
 
Tenure Up to 365 days
Security As per list of approved mutual funds
Loan amount Minimum Rs. 1 Crore
Interest rate Competitive
Margin 15% to 30%
Documentation Standard Loan Documents with PDC
Custodian Charges At Actuals (if held in electronic format)
 

Benefits
 Higher Liquidity
 Leverage your existing investments
 Take advantage of investment opportunities
 Easier and faster processing