Loan Against Shares & Mutual Funds - Minemi

Loan Against Shares & Mutual Funds: Unlock Liquidity from Your Investments

Borrow funds against your shares or mutual funds with ease. Secure a loan while retaining ownership of your investments.

Introduction

A Loan Against Shares & Mutual Funds allows you to unlock the value of your existing investments without selling them. This type of loan is a secured loan where you can pledge your shares, stocks, or mutual funds as collateral to borrow money at competitive interest rates. It's an ideal choice for those looking to meet urgent financial needs, such as business expansion, medical expenses, or even higher education, without parting with their valuable investments. By opting for this loan, you continue to benefit from any appreciation in the value of your shares and mutual funds while enjoying the liquidity you need.

Benefits of Loan Against Shares & Mutual Funds:

Retain Ownership: Continue to hold and benefit from your investments while securing a loan.
Quick Disbursal: Enjoy fast approval and disbursal of funds.
Competitive Interest Rates: Get loans at lower interest rates compared to unsecured loans.
Flexible Loan Amount: Borrow up to 60-80% of the market value of the pledged shares or mutual funds.
No Prepayment Penalties: Pay off the loan early without facing extra charges.

Eligibility Criteria for Loan Against Shares & Mutual Funds

CriteriaDetails
Income Requirement₹25,000/month minimum income
Credit Score700+ preferred for better rates
Age21 to 65 years
Investment TypeMust have shares, stocks, or mutual funds in your portfolio
Loan-to-Value RatioUp to 60-80% of the market value of the pledged assets

Documents Required:

Identity Proof: PAN Card, Aadhaar Card.
Address Proof: Utility Bills, Rent Agreement, etc.
Income Proof: Salary Slips, Bank Statements.
Investment Proof: Latest statements showing your shares or mutual funds.
Demat Account Statement: For shares held in a Demat account.

Use Cases for Loan Against Shares & Mutual Funds:

Business Expansion: Fund your business growth or working capital needs.
Medical Expenses: Meet urgent healthcare needs without liquidating investments.
Education Funding: Use the loan for higher education expenses, both domestic and international.
Debt Consolidation: Use the loan to consolidate high-interest debts into a more manageable repayment schedule.

Loan Against Shares & Mutual Funds vs. Personal Loan

FeatureLoan Against Shares & Mutual FundsPersonal Loan
CollateralShares, Stocks, or Mutual FundsNot required
Interest RateLower (5-15% p.a.)Higher (12-24% p.a.)
Loan Approval TimeQuick (within 24-48 hours)Moderate (1-2 weeks)
Loan Amount60-80% of the market value of investmentsFixed amount determined by the lender
Repayment PeriodFlexible, based on terms agreed upon Not requiredFixed tenure with monthly EMIs

Why Choose Minemi for Loan Against Shares & Mutual Funds?

Compare Multiple Lenders: Minemi allows you to compare offers from top lenders providing loans against shares and mutual funds.
Personalized Loan Options: Get tailored recommendations based on your investment portfolio and financial situation.
Seamless Online Process: Apply for your loan with ease through Minemi’s digital platform, from application to approval.
Transparency and No Hidden Charges: Benefit from full transparency with no hidden fees or charges.
Frequently Asked Questions (FAQs)
What is the interest rate on a loan against shares and mutual funds?
Interest rates typically range from 5-15% per annum, depending on the lender, the market value of your assets, and your creditworthiness.
Yes, even with a lower credit score, you can still qualify for a loan against shares or mutual funds, as the loan is secured against your investments.
The loan amount is typically determined by the market value of the pledged shares or mutual funds, with lenders offering up to 60-80% of the value of the assets.
No, most lenders do not charge prepayment penalties for loans against shares and mutual funds. However, it’s best to check with the lender for specific terms.

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