DhanLAP Mutual Fund Loan vs SBI 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 SBI Mutual Fund Loans
| Category | DhanLAP - Loan against Mutual Funds | SBI - 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 SBI Loan against Mutual Funds can only be made by visiting the bank and filling out a physical application form. |
| Loan Amount | ₹25000 to ₹5Crore | ₹25,000 to ₹20,00,000 on equity mutual funds. Upto ₹5Crore on debt mutual funds |
| Rate of Interest | • Interest rates starts from 10% | • 11% per annum |
| Processing Fee | • 1% of the loan amount plus applicable service tax | 0.75% of the Loan Amount + applicable service tax. |
| Loan Tenure | 6, 12, 18 and 24 months & renewable thereafter | 12 Months & renewable thereafter |
| 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 |
| 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: 85% 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. |
• Balloon Repayment: Pay only the loan interest every month and the principal amount at the end of the loan period. |
| 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 |
• Aadhaar number • PAN Number • Bank IFSC code • Bank Account number • Salary Slip • Form 16 • IT Return • Passport size photos • Last 6 months bank statement |
| 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 • Physical Documentation, Bank Visits • Only SBI Mutual Fund Schemes are eligible |
| Popular Products | • Loan against Mutual Funds • Loan against Shares |
• Loan against Mutual Funds • Loan against Shares • Dual Advantage Fund • Loan against SGB |
| List of Approved Schemes | All Equity and Debt Mutual Funds Schemes | Only SBI Mutual Fund Schemes are eligible |
| Minimum Withdrawal Amount | • Minimum withdrawal amount is ₹1,000 | NA |
| Revolving credit | • Available | • Available |
| Loan Renewable | • Renewal available after the loan tenure | • Renewal available after the loan tenure |
| 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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