Get Loan Against Mutual Fund Units Online in India | SBI - Personal Banking

SBI Digital Loan against Mutual Fund Units can be availed by SBI customers by pledging their MF units as security to the Bank

a) In case of immediate cash requirement, this loan can be availed instantly by the customer.

b) The customers need not sell their MF units to take care of their urgent/ temporary requirements.

c) Even during the loan period, the customers will continue earning returns on their Mutual Funds.

d) As the loan is offered in the form of overdraft facility, interest is applied only on the amount utilised.

By following below mentioned easy steps, you may get loan in less than 10 minutes: 

a) Log into your SBI INB portal or Bank’s website or YONO app.

b) Go to Loans and select “Loan against Mutual Fund Units”.

c) Confirm your credentials.

d) Select the Mutual Funds you wish to pledge.

e) Calculate your final loan amount.

f) Read & accept terms & conditions for lien marking on selected MF units through OTP.

g) Once the lien is marked in real time by CAMS, your overdraft (OD) account will be opened.

a) SBI Digital Loan against Mutual Fund Units is a general-purpose loan, granted to individuals.

b) It can be taken to meet contingencies and / or any personal need.

c) However, loan will not be sanctioned for speculative purposes and not for subscribing to or boosting up the sales of another scheme of mutual funds, for the purchase of shares / debentures / bonds.

a) Immediate sanction of loan.

b) Available against Debt/FMP/Equity Mutual Funds.

c) You need not liquidate/ sell your Mutual Funds.

d) Interest to be paid only on loan amount utilised.

e) 24X7 availability to apply for loan.

f) No need to visit branch or submit any document

Loan is normally sanctioned in less than 10 minutes and an overdraft (loan) account for the customer is created with loan amount as limit.

Yes, after opening a saving Bank account, you may apply for it.

No. This loan is available against 20 AMCs (MF Companies), including SBI MF who are registered with CAMS.

Anyone above 18 years of age with steady source of income can avail this loan, subject to following conditions:

a) Savings Bank Account with mode of operation as Single

b) Mutual Funds holding with CAMS as single.

c) Identical name and PAN number in both Bank account and MF account.

d) Your Mutual Fund company (Asset Management Company) from which you have purchased MF units, is registered with CAMS

a) You can use your funds through YONO app or through your Internet Banking facility for your personal needs.
b) Cheque book facility is also available.
c) However, no ATM card would be issued.

Minimum Loan amount is Rs. Rs 25,000

Maximum is in cases of: (a) Equity/ Hybrid/ ETF MF:  Rs 10 lacs

            (b) Debt/ FMP MF: Rs 5 crore

0.50% of the Loan Amount + applicable GST

(Minimum Rs 1,000 and Maximum: Rs 10,000 +applicable GST)

12 months

Yes, you will have the option to renew your account for further 12 months, by paying a nominal renewal charge.

You must service/pay monthly interest as & when applied.

Principal is to be repaid on or before the end of the loan tenure.

You shall also ensure that you conduct regular transactions in the account.

a) Interest rate w.e.f. 15.05.2024 is 11.15% p.a. (250 bps above 1-year MCLR).

b) It is on floating basis with 1 year reset period.

c) Please note that Interest Rate is subject to change as per Bank’s policy.

a) Equity/ Hybrid/ ETF MF: 50% 

b) Debt/ FMP MF: 25%

It means that a customer can borrow up to 50% of the Net Asset Value (NAV) for Equity/ Hybrid/ ETF Mutual Funds and up to 75% for Debt/FMP Mutual Funds.

However, the margin is to be maintained throughout the tenor of loan, failing which Bank will have the option to sell/ liquidate required number of MF units to regularise the loan account.

No

No, there is no prepayment penalty.

a) Account closure option is available in both Internet Banking facility and YONO app. However, sufficient funds must be available in your deposit account.
b) If sufficient funds are not available, please visit your Bank Branch for account closure through invocation of lien marked units.

Your lien marked MF units would be invoked / encashed by the Bank and appropriated against loan account. Remaining amount, if any, will be credited to your linked deposit account.