DhanLAP Mutual Fund Loan vs HDFC Mutual Fund Loans
DhanLAP is a prominent provider of loans against mutual funds and shares, offering customers the opportunity to leverage their investments for financial support. DhanLAP's distinct features and competitive terms, making it essential for customers to understand the differences to make an informed decision. More than 10,000+ customers trust.
Comparison Between DhanLAP Mutual Fund Loan vs HDFC Mutual Fund Loans
| Category | DhanLAP - Loan against Mutual Funds | HDFC - Loan against Mutual Funds |
| Application process | • Applications for DhanLAP Loan against Mutual Funds is entirely digital and only takes 15 minutes to complete the application | • Applications for HDFC Loan against Mutual Funds can only be made online HDFC bank NetBanking username and password. |
| Loan Amount | ₹25000 to ₹5Crore | ₹50,000 to ₹10,00,000 on equity mutual funds upto ₹1 crore for debt funds. |
| Rate of Interest | • Interest rates starts from 10% | • Starts from 8.00% to 16.90% |
| Processing Fee | • 1% of the loan amount plus applicable service tax | Upto 0.5 % of limit (Min of Rs 500/- & Max of Rs 1500) + GST |
| Loan Tenure | 6, 12, 18 and 24 months & renewable thereafter | NA |
| Eligibility | • Applicant must be at least 18 years of age and not more than 75 years. • Single mutual fund unit holders can borrow a loan. • Mutual funds units in CAMS, KFintech & in DEMAT are accepted |
• Applicant must be at least 18 years of age • Single mutual fund unit holders can borrow a loan. • Mutual Fund holding with CAMS as Single • Customer should have HDFC NetBanking User ID and password |
| Credit Score | • No Credit Score Limit | NA |
| NRI Cutomers | • Supports NRI customer with NRE and NRO accounts | NA |
| Loan to Value (LTV) Ratio | • Equity Funds: 50% of your mutual fund unit value • Debt Funds: 70% LTV |
• Equity Funds: Up to 50% of your equity mutual fund unit value • Debt Funds: 80% LTV |
| Payment Options | • EMI Repayment: Pay a monthly instalment 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. |
• Service your interest payments by way of credits in your account every month. The interest is calculated only on the amount of the loan actually used by you. |
| Prepayment charges | No Pre-payment penalty after first EMI payment | NA |
| Documentation | • Fully Digital • Aadhaar number • PAN Number • Bank IFSC code • Bank Account number • Mobile number associated with your Aadhaar & Bank account |
• Identity proof • Address proof • Signature proof • HDFC Netbanking username and password |
| Turnaround time | 15 Minutes | NA |
| Loan on all days | • Loan on all days, including saturday and sunday | NA |
| Pros | • Comparatively lower interest rates • Lower Processing Fee • No prepayment charges after first EMI payment • Mutual Fund Loans can be availed as overdraft • Pay interest only on the used amount |
• Lower Processing Fee |
| Cons | • The Minimum loan amount is higher | • EMI option not available • Only schemes are approved by HDFC Bank are eligible • Tedious process |
| Popular Products | • Loan against Mutual Funds • Loan against Shares |
• Loan against Mutual Funds • Loan against Shares |
| List of Approved Schemes | All Equity and Debt Mutual Funds Schemes | All approved Equity and Debt Mutual Funds Schemes by HDFC Bank |
| Minimum Withdrawal Amount | • Minimum withdrawal amount is ₹1,000 | NA |
| Revolving credit | • Available | NA |
| Loan Renewable | • Renewal available after the loan tenure | • 0.50% of the sanctioned credit limit. Minimum Rs.1000 and maximum upto Rs.5000. |
| Annual Renewal Charges | NA | ₹1000 + GST |
| Stamp Duty Charges | ₹20 + GST | NA |
| One-Time Lien Marking Charges | • CAMS Lien marking charges : ₹500 + GST • KFintech Lien marking charges: ₹300 +GST |
NA |
| Support | • Chat • Call • Mon to Sun. 9 AM to 9 PM |
• Mail • Call |
Note: The interest rates and features mentioned in the table above may change at the discretion of the service provider. All details shown above are stated on the relevant website as of March 1, 2024. Kindly check respective service provider website for any updated details.
Disclaimer: Display of any trademarks, trade names, logos, and other intellectual property belongs to their respective owners. The display of such intellectual property, along with related product information, does not imply DhanLAP's partnership with the owner of the intellectual property or the issuer/manufacturer of such products.
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