https://csb.bank.in/sites/default/files/csb-las-1600px-383px.png
Loan Against Mutual Funds (LAMF)
Loan Against Mutual Funds (LAMF)
Loan Against Mutual Funds (LAMF)
Unlock Liquidity. Stay Invested.
Need funds without redeeming your investments?
CSB Bank's Loan Against Mutual Funds (LAMF) enables you to access funds by pledging eligible Mutual Fund investments while continuing to remain invested. The facility is offered as a flexible Overdraft (OD), allowing you to withdraw funds as and when required and pay interest only on the amount utilized.
Enjoy a seamless digital journey with quick processing, instant limit assignment, and continuous portfolio monitoring.
Key Features
- Access liquidity without selling your Mutual Fund investments.
- Continue to benefit from potential market appreciation on your investments.
- Fully digital journey including authentication, pledge creation, and disbursement.
- Overdraft facility with flexibility to draw funds as per your requirements.
- Loan eligibility based on the value of your eligible Mutual Fund portfolio.
- Quick sanction and disbursement upon successful pledge creation.
Product Highlights
| Particulars | Details |
|---|---|
| Facility Type | Overdraft (OD) |
| Minimum Loan Amount | ₹50,000 |
| Maximum Loan Amount | Up to ₹1 Crore* |
| Eligible Customers | Resident Individuals |
| Security | Eligible Mutual Fund Units |
*Subject to portfolio value, applicable lending norms, Bank policy and regulatory guidelines.
Interest Rate
| Particulars | Details |
|---|---|
| Rate of Interest (ROI) | Starting from *9.00% p.a. ** |
*Interest rates are subject to the Bank's approved credit policy, customer profile, portfolio quality, market conditions, regulatory guidelines, and other applicable terms and conditions.
Loan-to-Value (LTV)
The eligible overdraft limit is determined based on the category and value of the pledged Mutual Fund portfolio, subject to the Bank's approved policy and regulatory guidelines.
| Mutual Fund Category | Maximum LTV* |
|---|---|
| Equity Mutual Funds | Up to 75% |
| Debt Mutual Funds | Up to 85% |
*Actual LTV may vary based on scheme eligibility, portfolio diversification, concentration risk, volatility, internal risk assessment, regulatory requirements, and the Bank's approved policy.
Why Choose CSB Bank LAMF?
Stay Invested
Access liquidity without redeeming your Mutual Fund holdings.
Pay Interest Only on Utilization
Interest is charged only on the amount utilized under the overdraft facility.
Digital Convenience
Complete the journey digitally from application to disbursement.
Flexible Access to Funds
Withdraw funds as and when required within your sanctioned limit.
Quick Access to Liquidity
Get funding against your investment portfolio without lengthy documentation.
Portfolio-Based Lending
Funding eligibility is linked to your Mutual Fund portfolio value and applicable policy norms.
Who Is This Product For?
Salaried Individuals
Meet personal expenses, education costs, travel requirements, medical emergencies, or lifestyle needs without liquidating investments.
Self-Employed Professionals
Access working capital or business-related funding while retaining ownership of your investments.
Affluent Customers
Fund planned expenses or emergency requirements without disrupting your investment portfolio.
Eligibility Criteria
- Resident Individuals.
- Age criteria as per prevailing Bank policy.
- Eligible Mutual Fund holdings through approved platforms.
- Successful completion of KYC and verification requirements.
- Mutual Fund schemes should meet the Bank's approved eligibility criteria.
How It Works
- Apply through CSB Bank's digital platform.
- Complete digital authentication and KYC.
- Fetch your Mutual Fund holdings digitally.
- Select eligible schemes for pledge creation.
- Receive your eligible overdraft limit based on portfolio value and applicable norms.
- Complete digital documentation and pledge confirmation.
- Start utilizing funds instantly within the sanctioned limit.
Frequently Asked Questions
The sanctioned limit depends on your eligible Mutual Fund portfolio value, fund category, diversification, and applicable Bank policy.
Yes. Your Mutual Fund units remain invested while being pledged as security.
You can withdraw funds up to your sanctioned limit and pay interest only on the amount utilized.
The pledged portfolio is monitored regularly. In case of a significant decline in portfolio value, you may be required to provide additional collateral or regularize the account as per Bank policy.
Yes. The customer journey is designed to be digital, including verification, pledge creation, and loan servicing.
Eligible schemes are determined as per the Bank's approved list and prevailing policy.
Limit enhancement may be considered based on portfolio value, additional securities pledged, and applicable Bank policy.
Yes. Subject to the terms of the overdraft facility, customers can repay and re-utilize funds within the sanctioned limit.
Schedule of Charges*
| Sr. No. | Particulars | Charges |
|---|---|---|
| 1 | Processing Fee (New) | Up to 2.00% of limit + GST |
| 2 | Processing Fee (Top-up) | Up to 1.00% of additional limit + GST |
| 3 | Bounce Charges | ₹500 + GST |
| 4 | Re-scheduling Charges | ₹500 + GST |
| 5 | Stamp Duty | As per applicable law |
| 6 | Renewal / AMC | ₹1,000 + GST |
| 7 | Legal & Incidental Charges | As per actuals |
| 8 | Account Setup (New) | ₹999 + GST |
| 9 | Account Setup (Top-up) | ₹599 + GST |
| 10 | Pledging Charges | ₹550 + GST |
| 11 | Invoke Charges | ₹2,000 + GST |
| 12 | De-pledge Charges | ₹400 + GST |
| 13 | Penal Charges | 24% p.a. on overdue amounts + GST |
| 14 | TOD / Expired Limit Charges | Additional 8% p.a. on outstanding utilization + GST |
