SBI Loan Against Mutual Fund Documents, Eligibility, Interest Rate, EMI, Apply Online

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SBI Loan Against Mutual Fund Documents, Eligibility, Interest Rate, EMI, Apply Online, how to get, details, application form

This article is all about SBI loan against mutual fund, and required information about it, such as interest rate, application form, EMI, loan amount, fees & charges, etc.

SBI provides a mutual fund loan against securities from 25,000 Rs, to 5 crore Rs. Let us talk about important aspects of this mutual fund scheme by the State bank of India.

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Main Highlights of SBI Loan Against Mutual Fund

  1. In this scheme the borrower can get a loan of a minimum 25,000 Rs. to a maximum of 5 crore Rs. under SBI mutual fund units.
  2. The effective interest rate in this mutual fund loan by SBI is 9.75% with a 1-year of 7.25% MCLR, etc.
  3. This loan is only available on approved schemes by the State bank of India.
  4. The loan tenure in this scheme is based on the sanctioned loan amount and the interest rate.
  5. The margin in this loan varies from 15% to 50% (Depends on the type of approved schemes in mutual funds).
  6. A processing fee (0.75% of the sanctioned loan amount), and also review/renewal charges are applied with an additional service tax.
  7. The applicant’s age must be over 18 years.
  8. This loan is only available at some eligible SBI branches of around all Indian states (List’s link given below).
  9. You can download the SBI loan against mutual fund application form from the official website (Page-link given below).

What is SBI Loan Against Mutual Fund?

This loan is provided by the State bank of India as a personal loan against securities. In this loan, only the approved schemes under the mutual funds’ schemes by SBI are available for Rs. 25,000 to Rs. 5 crore loan amount. Some schemes’ detail given below.

How much Amount of Loan is Provided in SBI Loan Against Mutual Fund Scheme?

Minimum – 25,000 Rs.

Maximum – 5,00,00,000 (5 Crore) Rs.

Sanctioned loan amount distribution

A 20 lakhs Rs. loan amount can be sanctioned for,

  1. Equity/Growth mutual funds
  2. Exchange-Traded mutual funds (ETF)
  3. Hybrid mutual funds

A 5 Crore Rs. loan amount can be sanctioned for,

  1. Fixed Maturity Plans/FMP (A fixed tenure mutual funds)
  2. Debt mutual funds

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Some names of approved schemes for loans against mutual funds

Examples of some approved funds that come to under the loan against mutual funds scheme of SBI.

Exchange-Traded Funds Equity/Growth Funds Hybrid Funds
SBI ETF Funds SBI Magnum Global Fund SBI EDGE Fund
SBI ETF Nifty SBI Magnum Equity Fund SBI Regular Saving Fund
SBI SENSEX ETF SBI Magnum Multicap Fund SBI Magnum Children’s Benefit Plan
SBI ETF Banking SBI Bluechip Fund SBI Magnum Balanced Fund

To get the complete list of all approved mutual funds schemes’ names by SBI – List of all Approved schemes Page.

Who is eligible for the SBI Loan Against Mutual Fund?

  1. This loan is only available at some eligible branches of the State bank of India across India. To get a list of all eligible branches or your nearest branch name with location – Visit official SBI Eligible Branches.
  2. Applicant age must be more than 18 years.
  3. The loan will only provide on the basis of approved mutual fund schemes by the bank.

SBI Loan Against Mutual Fund Document Requirements?

Required first, an application form to apply for a loan against mutual funds in SBI. The required form can be downloaded from the Official website of SBI. Form downloading details are given below.

How to get the application form for a loan against mutual funds in SBI?

  1. Open Offical SBI website.
  2. In the loans section, click on Personal loans.
  3. Choose loan against securities.
  4. Here click on Loan against mutual fund units.
  5. Here you will found details about this loan scheme, such as features, eligibility, documentation. 
  6. Choose documentation.
  7. Here you can click on the application form, and your required application form will start download automatically.
  8. After then get a hard copy of this downloaded form, and fill in all the required details, and contact the nearest SBI branch. 

Mandatory Original documents could be seen by the bank therefore, you should be ready for any further document verification, such as ID proof, Address proof, account statements, etc.

Following documents are required along with the application form in the SBI Loan Against Mutual Fund scheme.

  1. For Identity Proof – Copy of Passport, voter ID card, or Driving license.
  2. For Residence Proof – Copy of electricity bill, telephone bill, Passport, gas bill, voter ID card.
  3. A Latest Passport size photograph of the applicant or co-applicant.
  4. Copy of the latest Form 16 certificate from the employer (for employees) of the applicant or co-applicant.
  5. Official address proof of employees.
  6. Bank statement of last 6 months in which account the salary is credited of the applicant or co-applicant.
  7. The latest monthly salary slip (3 months) shows deductions from the account of the applicant or co-applicant.
  8. An acknowledged Copy of Income-tax (IT) returns by the income tax officer for the last 2 years with computation of income.

Interest Rate for SBI Loan Against Mutual Fund?

The infective interest rate for SBI loans against mutual funds is 9.75% (Interest rate may vary from applicant to applicant).

Also, for 1-year SBI MCLR rate is 7.25% and 2.50% for over 1-year MCLR.

Note: The interest rates can change with the passage of time.

Loan Tenure/repayment time for SBI Loan Against Mutual Fund?

There is no limited loan tenure or repayment times.

Because in this SBI mutual fund loan scheme the loan tenure depends on the sanctioned loan amount, and the applied interest rate.

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Examples of EMI Calculations for SBI Loan Against Mutual Fund

With An Interest rate of = 10.25% Per Annum.

SBI Loan Against Mutual Fund scheme’s EMI = Per Month Amount to be paid by the customer to the bank.

Loan Amount EMI for 1 Year EMI for 2 Year EMI for 3 Year
25,000 Rs. 2,201 Rs. 1,157 Rs. 810 Rs.
1 Lakh Rs. 8,803 Rs. 4,626 Rs. 3,238 Rs.
10 Lakhs Rs. 88,032 Rs. 46,260 Rs. 32,385 Rs.
50 lakhs Rs. 4,40,161 Rs. 2,31,302 Rs. 1,61,923 Rs.

Charges & Fees in SBI Loan Against Mutual Fund Scheme?

  1. Processing Fees – 0.75% of the sanctioned loan amount + applicable additional Service Tax (OR, charges subjected to a maximum of 50,000 Rs. + applicable additional service tax).
  2. Renewal or Review Charges (for every year.) – A 1000 Rs. + applicable additional service tax.

The Margin rates for SBI Loan Against Mutual Fund

A 50% Margin rate for – Equity/Growth mutual funds, Exchange-Traded mutual funds (ETF), Hybrid mutual funds.

A 15% Margin rate for – Debt mutual funds, Fixed Maturity Plans/FMP (A fixed tenure mutual funds).

How Can you Apply For SBI Loan Against Mutual Fund?

  1. You cannot apply directly through online mode.
  2. Offline mode – You can apply for this loan by filling the application form which you have downloaded from the official website of SBI.

FAQ – SBI Loan Against Mutual Fund

How would I know that which nearest SBI branch has available this loan scheme?

To get information about the nearest branch in which this loan scheme can be available, see the Official SBI list of available branches. Also, you can contact us (by comments on this article) to know about your nearest branch of SBI. 

SBI Loan Against Mutual Fund Customer Care/Contact information?

  1. Visit the nearest SBI Branch to solve your all doubts.
  2. Toll-free Numbers – 1800112211, 18004253800, 08026599990
  3. Email – customercare@sbi.co.in, contactcentre@sbi.co.in

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