In today’s world, man is in the rat race for the success of their business. Different banks are launching new schemes to support the business of emerging Entrepreneurs. ICIC Bank has launched a new facility to give loans digitally as an overdraft. The main advantage of this facility is that the customers can get loans up to 1 crore against their holdings in both debt and equity mutual funds without visiting the branch.
In order to avail of this loan, the customer should have Bank holding units in mutual funds schemes serviced by Computer Age Management Services and they had to submit the documents such as Insta loans against mutual funds. This scheme is a blessing to the customers in the present scenario as it helps to pledge their assets without stepping out. During the press release, Rajesh Iyer, Head-wealth, Private Banking, and LAS stated that during this pandemic situation this scheme will help self-employed customers who need to raise funds for their business as well as salaried customers to manage their personal liquidity. This facility is available anytime, anywhere for the customers by using the digital platform of Bank. This facility can be availed by Indian residents as well as for the portfolios that are individual holdings.
Salient features of instant loans against mutual funds:
- Instant access to funds:- without selling their mutual funds customers get access to instant liquidity
- The flexibility of mutual funds: – using a wide range of debt and equity schemes of MFs the customers can avail the loan.
- Wide range of loan amount:- min loan amount is 50,000 for debit and equity for MFs and
The maximum loan amount is 1 crore for the debt of MFs. 20 lakhs for equity schemes of MFs
- Competitive margin :- min 50% for equity and 20% for debt
- Advantage of OD, no fixed EMI:- the costumers only need to pay interest and they do not need to pay EMI
Steps to be followed to avail of this facility
- Login to the ICIC Bank official site
- Go to investment and insurance and click on Loans against mutual funds
- Select the pre-qualified eligibility and select the type of mutual funds.
- On redirection to the CAMS portal, select the mutual fund scheme and number of units.