If you have been investing in mutual funds and suddenly need funds for an emergency, consider obtaining an SBI loan against your mutual funds instead of selling your investments. Getting a loan against mutual funds from SBI is a smart way to get access to funds while retaining ownership and benefiting from their potential future gains.
A loan against mutual funds is a loan you can take using your mutual funds as collateral. This type of loan has lower interest rates as compared to personal loans offering you a cost-effective borrowing option. While there are certain risks associated with the loan such as market volatility affecting the value of your mutual funds, taking a loan with mutual funds as collateral is much better than selling them.
SBI offers loans against mutual funds with a maximum loan amount of ₹20,00,000 sfor Equity/ Hybrid/ ETF MF holders and ₹5,00,00,000 for Debt/ FMP MF holders. It offers a loan at an interest rate of 11.35% p.a. making it an attractive loan option for investors who require emergency funds.
SBI Loan Against Mutual Funds Details
An SBI loan against mutual funds allows you to get a secured loan using your investments as collateral. Given below are the details of the loan:
| Minimum Loan Amount | ₹25,000 |
| Maximum Loan Amount For Equity/ Hybrid/ ETF MFx | ₹20,00,000 |
| Maximum Loan Amount For Debt/ FMP MF | ₹5,00,00,000 |
| Margin For Equity/ Hybrid/ ETF MF | 50% |
| Margin For Debt/ FMP MF | 25% |
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SBI Loan Against Mutual Funds Interest Rate & Charges
The interest rate for SBI loans against mutual funds is low as it is a secured loan. Given below are the interest rates and charges of the SBI loan against the mutual fund for you to consider the total cost of borrowing:
| Interest Rate | 11.35% p.a. onwards |
| Processing Fee | 0.50% + Service Tax |
| Renewal charges | ₹1000 + Service Tax |
SBI Loan Against Mutual Funds Eligibility Criteria
To get an SBI loan against mutual funds certain eligibility criteria must be met, these are:
- The borrower should be at least 18 years of age.
- The loan will be eligible for all branches.
Documents Required for SBI Loan Against Mutual Funds
The documents required to get an SBI loan against mutual funds are minimal. All you need to submit are documents to verify your identity, address, and mutual fund investments. Here’s a list of what you need:
- Application form
- Identity Proof: PAN card, Aadhaar card, Voter ID, etc
- Address Proof: Aadhaar card, Passport, Voter ID, Electricity bill, Telephone bill, etc
- Mutual fund holding proof: Mutual Funds statement
- Latest passport-size photographs.
Features & Benefits of SBI Loan Against Mutual Funds
An SBI loan against mutual funds offers you several features and benefits, making it an attractive option for investors who need urgent funds. These are:
- Retain your investments: By taking a loan against mutual funds, you continue to own your mutual fund investments. This allows you to benefit from potential market appreciation and dividends.
- Quick access to funds: The loan approval and disbursement process for loan against MF is simple, providing you with fast access to funds during financial emergencies.
- Competitive interest rates: You can enjoy competitive interest rates starting from 11.35% p.a. Onwards. It is a cost-effective borrowing option as it is a secured loan.
- High loan amounts: Get loan amounts up to ₹20,00,000 for Equity/ Hybrid/ ETF MF holders and ₹5,00,00,000 for Debt/ FMP MF holders.
- No prepayment penalties: You can repay the loan amount before the tenure ends without the need to pay any prepayment charges, giving you the flexibility to close the loan early and save on interest costs.
- Minimal documentation: The documentation process requires only basic documents such as proof of identity, address, and mutual fund statements.
- Good margin for loan amount: You can get up to 50% on the Equity/ Hybrid/ ETF MF and 25% on Debt/ FMP MF accounts.
SBI Loan Against Mutual Funds EMI Calculator
Getting an SBI loan against mutual funds comes with the commitment of repayment every month. The Equated Monthly Instalments (EMI) is a fixed sum of money that you need to pay every month to repay your SBI loan against mutual funds. To help you estimate your EMI for the loan, SBI offers an EMI calculator.
The EMI calculator is a simple tool that you can use to estimate your EMI based on your loan amount, interest rate and tenure. The calculator gives you quick and accurate results based on your loan terms, thereby helping you plan your finances properly.
To use this calculator, simply enter your loan amount, interest rate and tenure then click ‘Calculate’, you will then see the estimated EMI amount in seconds.
Your Amortization Schedule (Yearly/Monthly)
Steps to Apply For SBI Loan Against Mutual Funds
Applying for the SBI loan against mutual funds can be done online or offline, for the offline method, you will need to visit the bank and speak with the bank representative. They will then guide you through the application process. For the online method, here are the steps that you can follow:
- Step 1: Visit the official SBI website.
- Step 2: Navigate to the loan against mutual funds section.
- Step 3: Fill out the application form with your personal and professional details.
- Step 4: Upload scanned copies of the required documents.
- Step 5: You can then submit the form online.
- Step 6: The bank will then verify your information.
- Step 7: Once the verification is successful, and your loan is approved, you will then get the amount disbursed into your bank account.
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You can also take a loan against other assets, know more from the links below:
Schemes Approved For SBI Loan Against Mutual Funds
There are certain schemes that are approved for the SBI loan against mutual funds, here is a list of the approved schemes:
| Equity / Growth Funds | Thematic Funds |
|---|---|
| SBI Contra Fund | SBI Consumption Opportunities Fund |
| SBI Dividend Yield Fund | SBI Equity Minimum Variance Fund |
| SBI Flexicap Fund | SBI Magnum Equity ESG Fund |
| SBI Focused Equity Fund | SBI Magnum Global Fund |
| SBI Large & Midcap Fund | SBI CPO Fund – Series A (Plan 5) |
| SBI Bluechip Fund | SBI CPO Fund – Series A (Plan 6) |
| SBI Magnum Midcap Fund | SBI CPO Fund – Series A (Plan 7) |
| SBI Multicap Fund | SBI CPO Fund – Series A (Plan 8) |
| SBI Small Cap Fund | – |
| Sectoral Funds | Hybrid Funds |
|---|---|
| SBI Banking & Financial Services Fund | SBI Conservative Hybrid Fund |
| SBI Healthcare Opportunities Fund | SBI Balanced Advantage Fund |
| SBI Infrastructure Fund – Growth | SBI Equity Savings Fund |
| SBI Magnum COMMA Fund | SBI Multi Asset Allocation Fund |
| SBI PSU Fund | SBI Magnum Children’s Benefit Fund – Investment Plan |
| SBI Technology Opportunities Fund | SBI Magnum Children’s Benefit Fund – Savings Plan |
| – | SBI Retirement Benefit Fund – Aggressive Hybrid Plan |
| – | SBI Retirement Benefit Fund – Aggressive Plan |
| – | SBI Retirement Benefit Fund – Conservative Hybrid Plan |
| Exchange Traded Funds (ETFs) | ELSS Funds |
|---|---|
| SBI Gold ETF | SBI Long Term Advantage Fund – Series I |
| SBI Nifty 10 yr Benchmark G-Sec ETF | SBI Long Term Advantage Fund – Series II |
| SBI NIFTY 200 Quality 30 ETF | SBI Long Term Advantage Fund – Series III |
| SBI Nifty 50 ETF | SBI Long Term Advantage Fund – Series IV |
| SBI Nifty Bank ETF | SBI Long Term Advantage Fund – Series V |
| SBI Nifty Next 50 ETF | SBI Long Term Equity Fund |
| SBI S&P BSE Sensex ETF | SBI Tax Advantage Fund – Series 3 |
| Index Funds | Debt Schemes |
|---|---|
| SBI Nifty Index Fund | SBI Banking and PSU Fund |
| SBI Nifty Midcap 150 Index Fund | SBI Corporate Bond Fund |
| SBI Nifty Next 50 Index Fund | SBI Credit Risk Fund |
| SBI Nifty Smallcap 250 Index Fund | SBI Dynamic Bond Fund |
| SBI Arbitrage Opportunities Fund | SBI Liquid Fund |
| – | SBI Short Term Debt Fund |
| FMP Schemes |
|---|
| SBI FMP – Series 71 – 364 Days |
| SBI FMP – Series 73 – 1226 Days |
| SBI FMP – Series 74 – 1243 Days |
| SBI FMP – Series 75 – 366 Days |
| SBI FMP – Series 76 – 1221 Days |
| SBI FMP – Series 77 – 366 Days |
| SBI FMP – Series 78 – 1170 Days |
| SBI FMP – Series 79 – 1130 Days |
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