Loan Against Mutual Fund (LAMF)?? - Query & Discussion

[Credit Karma]

I have following questions regarding LAMF-

1. Is there a CIBIL enquiry when you avail LAMF from any of the banks or NBFC?

2. I am planning for 5 Lakh personal loan as well in Dec or Jan, will this LAMF affect to that in any ways?

3. Has anyone continued their LAMF for more than a year? If yes, do they create new OD or the same one continues, for NBFCs and Banks as well? And how is it reported in CIBIL? Screen shot will be welcome.

4. I am planning to get it from SBI, as I am bit skeptical about these NBFCs, qnd yes, i am willing to pay more for the peace of mind.

 

[SSquad]

1. Depends on the Bank or NBFC, no CIBIL enquiry by Zerodha Capital.
2. Unlikely to impact personal loan as 40% of the collateral value will be provided and reported to CIBIL.
3. Interest has to be paid monthly, principal in 12 months. Need to obtain fresh loan after this amount is cleared. It will be reported as loan against securities with the current balance plus interest minus any repayment.
4. Check for the interest rates and processing fee, as you pledge the securities and avail loan it's a straight forward process. You can also go with an NBFC.

 

[Credit Karma]

1. Depends on the Bank or NBFC, no CIBIL enquiry by Zerodha Capital.
2. Unlikely to impact personal loan as 40% of the collateral value will be provided and reported to CIBIL.
3. Interest has to be paid monthly, principal in 12 months. Need to obtain fresh loan after this amount is cleared. It will be reported as loan against securities with the current balance plus interest minus any repayment.
4. Check for the interest rates and processing fee, as you pledge the securities and avail loan it's a straight forward process. You can also go with an NBFC.

1. So lets say that you want to renew the account after one year, in this case will bank or NBFC renew it with same account number or give a completely different account number by closing the first one? And how will it appear in the CIBIL, i.e one account or two accounts?
2. Also, does the limit of OD is fixed at todays market rate or does it flactuates as per live market movements? I know that that there are proper margin calls setup as well...
3. Can you pledge more units anytine you want or you have to open a new LAMF Account?

 

[SSquad]

1. So lets say that you want to renew the account after one year, in this case will bank or NBFC renew it with same account number or give a completely different account number by closing the first one? And how will it appear in the CIBIL, i.e one account or two accounts?
2. Also, does the limit of OD is fixed at todays market rate or does it flactuates as per live market movements? I know that that there are proper margin calls setup as well...
3. Can you pledge more units anytine you want or you have to open a new LAMF Account?

1. Likely the old loan account will be closed and new account will be reported to CIBIL. It's been 6 months since I availed this loan.
2. There are multiple aspects.

• Sanctioned amount - The total value of pledged securities at the time of loan disbursal.
• Current balance - The loan availed plus interest minus principal repayment.
• Value of collateral - Pledged securities minus unpledged securities based on market value.

These details are reported to CIBIL as on specific date. Yes, margin call needs to be fulfilled based on timeline provided by lender.
3. Yes, more securities can be pledged as top up with the same account.

Few points to be considered (Might vary based on the lender).

• Max 10 scrips can be pledged as collateral to avail loan.
• The value of subsequent pledge shall not exceed the sanction limit (initial value of securities at the time of loan disbursement).
• If subsequent pledge exceeds the sanction limit, it will be considered as fresh loan with new account.
• Excess top up can be availed any number of times but cumulative value shall not exceed the sanctioned limit.

 

[Manav24]

I have following questions regarding LAMF-

1. Is there a CIBIL enquiry when you avail LAMF from any of the banks or NBFC?

2. I am planning for 5 Lakh personal loan as well in Dec or Jan, will this LAMF affect to that in any ways?

3. Has anyone continued their LAMF for more than a year? If yes, do they create new OD or the same one continues, for NBFCs and Banks as well? And how is it reported in CIBIL? Screen shot will be welcome.

4. I am planning to get it from SBI, as I am bit skeptical about these NBFCs, qnd yes, i am willing to pay more for the peace of mind.

1. Yes every financial institution do a cibil enquiry. Even NBFC.

2. No issues with any other loans as its a secured loan and thus good for Credit rating.
3 Continued a 4 lac loan since 3 years, they renew od each year and charge renewal fees on the same.
4. SBI is worst to take a loan which can be availed digitally within minutes, They will need you to visit branch for renewal and than throw countless tantrums and try selling you insurance for renewal. (i have worked in that shithole of the bank for 6 years)

My personal experience was with Mirae
Afaik their processing fee and renewal fee is minimal, also current interest being charged is 10.25%.

If you want even easier option than you can check JIO finance app, processsing and renewal fee is much higher though.

 

[Manav24]

Cibil report for the loan against mutual fund by Mirae