Mutual Fund Loan: People take loans to meet their financial needs. Loans can be taken from banks or institutions as per the requirement.
Additionally, loans can also be taken while investing in government schemes.
Loans can be claimed from government schemes to mutual funds as well.
However, if you are taking a loan from mutual funds, you should know everything about it.
You are charged from processing fees to interest when taking a loan from mutual funds.
The loan can be availed by Individual Investors, NRI, Companies, HUF, trusts, and other Mutual Funds.
Minors are not given loans under mutual funds. The bank decides the tenure and interest rate on the bank or financial institution’s loan amount.
Also, the loan amount depends on the credit score and other factors.
How much loan can be taken
In equity mutual funds, up to 50 percent of your total asset value can be given as a loan.
On the other hand, a loan on a fixed income in mutual funds can be taken up to 70 to 80 percent of the total asset value.
How can I take a loan from Mutual Fund?
Like other loans, you can also take a loan on mutual funds from a bank or institution. Many companies or banks provide online loan facilities.
By applying for the loan online, you can get instant approval and withdraw the loan amount from your account after a few days.
How much will the charge
The charges on this loan are less than a personal loan, and taking this type of loan is also considered cheaper.
In this, you also have to pay fewer processing fees. On the contrary, you will have to pay more processing fees on a personal loan.
Sometimes, the processing fee and other charges can also be waived.
