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ICICI bank Launched a Facility, ‘Insta Loans against Mutual Funds’, in Partnership with Computer Age Management Services

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ICICI instant loan facility against mutual fundsOn July 1, 2020 ICICI Bank in partnership with Computer Age Management Services(CAMS) launched ‘Insta Loans against Mutual Funds’, a facility for retail customers to avail loans upto Rs 1 crore instantly by pledging their holdings in both debt and equity Mutual Funds(MFs).

Gist about Insta Loans against Mutual Funds

Key info

i.The facility is an extension of the Insta Loan Against Shares(LAS). 

ii.It is a full digital and paperless facility. It empowers customers to get this loan as an overdraft (OD) within a few minutes without having to visit a branch and submit physical documents.

Features 

Access to instant liquidity– It paves way for the customers to get access to instant liquidity by leveraging their existing mutual fund portfolio, without selling them.

Pros of MFs- Customers can avail the loan against a vast range of debt and equity schemes of mutual funds serviced by CAMS and approved by the Bank

Loan amount- Minimum loan amount for debt and equity schemes of MFs is Rs. 50,000. Maximum loan amount for debt schemes of MFs is Rs 1 crore and for equity schemes of MFs is Rs. 20 lakh 

Competitive margin– Minimum 50% for equity and 20% for debt MFs

No fixed EMI– The customers are not required to pay fixed EMI as the loan is available as an OD. 

Interest Payment– Customers have to pay interest on the limit used and the number of days it is used.

No foreclosure charges– The customers can repay the principal at their own convenience, without any foreclosure charges

About ICICI bank:
Headquarters– Mumbai, Maharashtra
Managing Director(MD) & Chief Executive Officer(CEO)– Sandeep Bakhshi