With Loan against Mutual Fund, you offer your MF units as collateral for the loan. The lender 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 lender.

All equity mutual funds offered by all mutual fund companies (exception - Franklin Templeton) are eligible for loans at DhanLAP.

Not eligible - Tax Saving Funds, Debt Funds and Joint Holdings.

To be eligible for a loan with DhanLAP,

1. Your entire mutual fund portfolio, excluding ELSS and debt funds, should not be less than ₹50,000.

2. You should be above 18 years of age.

3. Joint mutual fund holders are not eligible for loan.

We accept accounts at all banks recognized by RBI. There are no restrictions for any bank in our platform.

You can take a loan upto 20 lacs with DhanLAP.

You may borrow up to 50% of the value of your equity mutual fund schemes in your portfolio. The value of your mutual fund scheme is derived by multiplying the number of units by the scheme's NAV. The total value of all equity mutual fund schemes will be used to calculate your portfolio value.

Video customer in-person verification is referred to as VCIP. It is an RBI requirement, and each user must undergo VCIP before the loan can be granted.

You should have your original Aadhar and PAN card with you while undergoing the VCIP.

You do not need any physical documents to get this loan. You only need:

1. CAS

2. Aadhar number

3. PAN number

4. Bank account number

5. IFSC code

6. You also need to have access to the mobile number associated with your Aadhar and bank account.

Our platform offers a end-to-end digital process for taking your loan. Once the process is completed the loan will be disbursed to your bank account immediately.

Yes, you can choose any date for your monthly repayment from 1 to 28.

Visit CAMS website and enter your email, PAN number and CAMS123$ as password to generate your latest CAS.

You will get an email from CAMS Mailback server within 30 mins with your latest CAS. You can forward the email directly to tech@dhanlap.com.

Once you forward/upload your latest CAS, we will immediately show you the loan eligibility.

Yes, we check your credit score with a RBI recognized credit bureau. You will be getting a credit report too in your email. It is a RBI regulation that we need to do a credit check before offering you a loan.

If the total value of your mutual fund units falls below 90% of the lien marked value, you will get a warning email and sms to replenish the amount. If the value falls below 80% you will get a final warning email and sms to replenish the amount. If the value falls below 75% of the lien marked value, we will sell the mutual fund units and take our principal and interest and transfer the remaining amount to your bank account.

No, you cannot take a loan against your mutual fund units. Only resident Indians can avail this loan facility.

No, you cannot take loans against mutual funds units held in a corporate or HUF account. Only mutual fund units held in individual accounts can take a loan.

When you take a loan against your mutual fund units, we pledge your mutual fund units, so that it cannot be redeemed until you pay back the loan. The lien marking is done digitally and in real-time.

Yes, you can lien mark any equity mutual fund units of your choice in your mutual fund portfolio. We will show you an optimal allocation for lien marking depending on your portfolio and loan amount that you had asked for. You can change the schemes and units and have your own allocation for lien marking. We are completely flexible with it.

There are few components to the charges of a loan. They are the interest rate, the one-time processing charge, the actual lien marking charges of registrars, and the other charges such as stamp duty, bank mandate charges, etc.

During the loan process, an eMandate (NACH) is established with your bank account to deduct the monthly EMI/Balloon payment amount to repay the loan. The sum will be withdrawn from your bank account automatically, based on the date you choose, to pay your EMI/Balloon installments. We will notify you with an SMS and an email before deducting your monthly payments so that you may ensure that the funds are accessible in your bank account.

There are two repayment options for the loan: EMI and Balloon repayment.

EMI Repayment: Pay a monthly installment that is divided between interest and principal repayment.

Balloon Repayment: Pay only the loan interest every month and the principal amount at the end of the loan period.

Yes, you can choose any date for your monthly repayment from 1 to 28.

We are currently offering loan tenure of 6 months, 12 months and 18 months. You can choose any one of the tenures for your loan.

All your mutual fund units will be Unlien marked (lien unmarked) and converted into 'free' units.

At DhanLAP, we offer maximum flexibility for our customers. Hence, there are no pre-payment charges or penalties after 6 months. You can choose when you want to repay the amount.

The prepayment charges if you prepay before 6 months are as follows:

0 to 3 months - 3%

3 months 1 day to 6 months - 2%

The charges will be applicable on the prepayment amount.

If you are not able to repay the loan, you have the option to ask us to sell off the mutual fund units, repay the principal, interest and get back the remaining amount in your bank account.

You can either contact your AMC to update your mobile number/email or use services like MFCentral that allows you to do the same across all AMCs with just one request.

We recommend you maintain a single email Id and Mobile number across all your Mutual Fund investments to ensure better communications. This will help in tracking your investments easily and help send out any common communication seamlessly such as your CAS, Portfolio Statement etc.

With our OD facility pay monthly installments only for the amount you withdraw from the sanctioned amount.

Absolutely, you have the option to prepay the loan partially or fully whenever you choose.

Once you repay your full loan amount, your funds will be unlienmarked immediately.