You have meticulously and systematically built up a Mutual Fund portfolio for the long term. The funds are delivering good returns, but unluckily, you need some money now for a short-term purpose but at the same time you don’t want to sell your funds.
A great option in this situation is a Loan against Mutual Funds but just not any other option, you can now consider the Digital Loan against Mutual Funds.
This loan gives you the best of both worlds – your Mutual Fund portfolio remains intact and continues to earn returns while the digital loan takes care of your short-term money needs.
- What is a Digital Loan against Mutual Funds?
Through a Digital Loan against Mutual Fund, you offer your MF units as collateral for the loan. The bank holds the Mutual Fund units as a security till you repay the loan amount. Your Mutual Funds will continue to earn returns, but you cannot sell them while you have pledged them to the bank. HDFC Bank is one of the first to offer a Digital Loan against Mututal Funds in partnership with transfer agent CAMS.
- How can I get a Digital Loan against Mutual Funds?
If you are a HDFC Bank customer, you can get a Digital Loan against Mutual Fund in three easy steps and under three minutes
You will need to:- Log into your myCAMS via HDFC Bank website and select the Mutual Funds you wish to pledge from your profile.
- Click on the loan terms and conditions.
- Input the One Time Password (OTP) after which, your overdraft will be ready to use in your account.
- What are the key benefits of Digital Loan against Mutual Funds?
The benefits of HDFC Bank Digital Loan against Mutual Funds include:- Instant availability of funds in account within minutes
- Available against both Debt and Equity Mutual Funds
- Customer retains Mutual Funds portfolio without liquidation
- First time borrowers without credit history can access loans
- Interest applied only on amount utilised
- Available across the country on HDFC Bank website
- New Loans and Enhancements can be done online
You can read more about the Digital Loan against Mutual Funds benefits here.
- How can I use my funds?
You can use your funds any way you like for personal or business needs.
For more information about applying for a Digital Loan against Mutual Funds, click here.
* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
