Archive · 25 Jun 2025
HDFC Bank Rolls Out Digital Loans Against Mutual Funds
Imagine you have investments in mutual funds, but you need some money quickly.
HDFC Bank lets you borrow money using your mutual funds as collateral, without selling them.
It's like getting a loan, but you don't have to sell your investments.
You can borrow a certain amount depending on your funds.
The interest rate is between 10% and 15%, and you pay interest only on what you use.
It is essential to watch out for things like how the value of your funds changes.
HDFC Bank offers digital loans against mutual funds to provide instant liquidity.
Borrowers can pledge mutual fund units as collateral to obtain credit.
Loans are available for both equity and debt funds through a paperless process.
Interest rates range from 10% to 15% per annum, with potential promotional rates.
Key risks involve monitoring NAV, impact on SIPs, and responsible usage.
- Who
- Investors seeking instant funds.
- What
- HDFC Bank offers digital loans against mutual funds.
- When
- Available now, with promotional rates offered.
- Where
- HDFC Bank website or internet banking.
- Why
- To access liquidity while maintaining market exposure.
Benefits
Risks
Accessibility vs Risk
Benefits
Provides instant access to funds without selling investments.
Risks
Potential for the loan to be used for speculative investment and result in losses.
- Loan Provider
- HDFC Bank
- Loan Amount (Debt Funds)
- ₹50,000 to ₹1 crore
- Loan Amount (Equity Funds)
- Up to ₹20 lakh
- LTV (Debt Funds)
- Up to 80%
- LTV (Equity Funds)
- Up to 50%
- Interest Rates
- 10% to 15% per annum
