• ICICI Insta Loan Against Mutual Funds 

    ICICI Insta Loan Against Mutual Funds

    ICICI Bank now offers its customers the benefit of availing an instant loan against mutual funds. The ICICI Insta Loan Against Mutual Funds is one of the latest offerings from the bank.

    • Interest rates starting at just 9.40% p.a.
    • Nominal processing fee of just Rs.500 plus applicable taxes
    • Interest is charged only on the loan amount which is utilised
    • Loan amount ranging from Rs.50,00 to Rs.20 lakh

    Why Should You Choose ICICI Insta Loan Against Mutual Funds?

    The key features of the ICICI Insta Loan Against Mutual Funds can be summed up as follows:

    • Avail a loan amount of up to 50% of the Net Asset Value or NAV (equity mutual funds)
    • Avail a loan amount of up to 80% of the Net Asset Value or NAV (debt mutual funds)
    • The Insta Loan facility can be availed by existing ICICI Bank customers who have mutual fund holdings
    • The facility can be availed only against the mutual funds which are approved by the bank and are registered with Computer Age Management Solutions Private Limited (CAMS).

    Eligibility Criteria for ICICI Insta Loan Against Mutual Funds

    The eligibility criteria for the ICICI Insta Loan Against Mutual Funds can be listed as follows:

    • The facility is open to ‘pre-qualified’ individual customers only.
    • The applicant should have an existing savings account with the bank.
    • The applicant must be maintaining a portfolio with mutual funds registered with CAMS.
    • The applicant should be an Indian resident.

    Rate of Interest for the ICICI Insta Loan Against Mutual Funds

    The rate of interest for the ICICI Insta Loan Against Mutual Funds are as follows:

    • 9.90% p.a. for equity mutual funds
    • 9.40% p.a. for debt mutual funds

    How to apply for a loan through ICICI Insta Loan Against Mutual Funds?

    To apply for a loan through the ICICI Insta Loan Against Mutual Funds, an individual will be required to follow the steps mentioned below:

    1) Log in to the ICICI Bank Internet Banking profile.

    2) Once you log in, go to the ‘Investment and Insurance’ tab.

    3) Click on the ‘Insta Loan Against Mutual Funds’ option.

    4) Use One Time Password (OTP) authentication to confirm the request through the CAMS portal.

    5) Check the box against the ‘Terms and Conditions’ after going through it.

    6) An OTP will be sent to your registered mobile phone number and email ID.

    7) Use the OTP to authenticate the process of opening the loan against mutual fund Over Draft (OD) account.

    8) The account is opened instantly.

    9) Once the account I opened and the confirmation of lien making is done, the limit will be set for the OD loan account.

    10) After the successful completion of this process, the amount will be credited to the account.

    Documents required to apply for ICICI Insta Loan Against Mutual Funds

    As the ICICI Insta Loan Against Mutual Funds is a pre-approved loan facility, the bank does not require the applicant to submit any documents. The documents already submitted and verified as the applicant will be an existing customer of the bank.

    How the EMI calculation works for ICICI Insta Loan Against Mutual Funds?

    If you consider an example wherein the applicant has applied for a loan amount of Rs.2 lakh under the ICICI Insta Loan Against Mutual Funds in the month of July 2020. The interest rate charged by the bank is 9.40% p.a. as the mutual fund holding of the applicant is debt mutual fund. Let us assume, the loan repayment tenure for the loan is 1 year. In this case, the monthly personal loan EMI that the individual will have to pay will be Rs.17,527. The loan repayment schedule of the individual is given below:

    Year Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
    2020 97,661 7,507 1,05,168 1,02,340
    July 15,961 1,567 17,528 1,84,039
    Aug 16,086 1,442 17,528 1,67,953
    Sep 16,212 1,316 17,528 1,51,742
    Oct 16,339 1,189 17,528 1,35,403
    Nov 16,467 1,061 17,528 1,18,936
    Dec 16,596 932 17,528 1,02,340
    2021 1,02,341 2,825 1,05,166 0
    Jan 16,726 802 17,528 85,615
    Feb 16,857 671 17,528 68,758
    Mar 16,989 539 17,528 51,769
    Apr 17,122 406 17,528 34,647
    May 17,256 271 17,527 17,391
    Jun 17,391 136 17,527 0

    Frequently Asked Questions (FAQs)

    1) Will ICICI Bank allow me to apply for an additional overdraft limit under the ICICI Insta Loan Against Mutual Funds?

    A: Yes, the additional overdraft limit feature is available under the ICICI Insta Loan Against Mutual Funds. However, you cannot apply for it online. You will be required to visit the nearest ICICI Bank branch office for the same.

    2) Will ICICI Bank allow me to process the lien removal of mutual funds online?

    A: No, ICICI Bank does not allow you to process the lien removal of mutual funds online. You will be required to visit the nearest branch office of the bank for the same.

    3) Are NRIs eligible to apply for a loan with ICICI Bank under the ICICI Insta Loan Against Mutual Funds?

    A: Even if an NRI has an existing relationship with the bank, at present the benefits of the ICICI Insta Loan Against Mutual Funds is not available for NRIs.

    4) Will the bank charge me for the lien removal and lien marking on my mutual fund?

    A: No, ICICI Bank does not charge any lien removal and lien marking charges on mutual funds.

    5) What is the loan repayment tenure under the ICICI Insta Loan Against Mutual Funds?

    A: The loan facility under the ICICI Insta Loan Against Mutual Funds is available for a loan repayment tenure of 1 year. The same gets renewed after the completion of the first year subject to the performance of the account.

        

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