ICICI Bank has launched a facility that enables retail customers to get loan of up to ₹1 crore instantaneously by pledging their holdings in both debt and equity mutual funds. The fully digital and paperless facility empowers the customers to avail this loan as an overdraft (OD) in a matter of few minutes, without visiting a branch and submitting physical documents.
ICICI Bank has launched ‘Insta Loans against Mutual Funds’ in partnership with ‘Computer Age Management Services’ (CAMS). ‘Insta Loans against Mutual Funds’ is an extension of the Insta LAS, an instant loan facility against equity shares, which the bank had launched over a year ago.
"We are happy to partner with CAMS for this facility to provide complete digital access for loans against mutual funds to our customers. With this facility, customers can leverage their mutual fund holdings to get access to funds instantly." Rajesh Iyer, Head- Wealth, Private Banking and LAS, ICICI Bank said.
“We are delighted that our portal is expanding further to serve mutual fund customers in newer ways. This is an important milestone in our mutual fund service journey," Anuj Kumar, President & CEO, CAMS, said.
Salient features of ‘Insta Loans against Mutual Funds’
1) Instant access to funds: The customers get access to instant liquidity by leveraging their existing mutual fund portfolio, without selling them.
2) Flexibility of mutual funds: The loan can be availed against a wide range of debt and equity schemes of mutual funds serviced by CAMS and approved by the Bank
3) Wide range of loan amount: Minimum loan amount is Rs. 50,000 for both debt and equity schemes of MFs. Maximum loan amount is Rs. 1 crore for debt schemes of MFs and Rs. 20 lakh for equity schemes of MFs
4) Competitive margin: Minimum 20% for debt and 50% for equity MFs
5) Advantage of OD; No fixed EMI: Since the loan is available as an OD, the customers do not have to pay fixed EMI. They only need to pay interest on the limit utilised and for the number of the days it was utilised
6) No foreclosure charges: The customers have the flexibility to repay the principal as and when they choose to, without any foreclosure charges
Here are the steps to avail the loan in a few simple steps as below:
- Log in to ICICI Bank Internet Banking.
- Go to ‘Investment & Insurance’. Click on ‘Loan against Mutual Funds’
- Check pre-qualified eligibility. And select type of mutual fund.
- On re-direction to CAMS portal, select mutual fund scheme and number of units. Confirm request through One-Time Password (OTP) authentication.
- Confirm loan amount and commercials of the loan on ICICI Bank internet banking. Complete FATCA. Accept terms and conditions.
- Enter OTP received on registered mobile number with the Bank. Instantly the OD account and limit is set up.