Loan Against Mutual Funds FAQs | ICICI Bank

ICICI Bank Loan Against Mutual Funds allows you to pledge eligible mutual fund units as collateral to ICICI Bank in exchange for quick access to funds without selling your investments.

Individuals and NRIs holding eligible mutual fund units that meet ICICI Bank’s approved list criteria can apply.

You pledge mutual fund units in favour of ICICI Bank. Based on the Net Asset Value (NAV) and Loan-to-Value (LTV) ratio, ICICI Bank provides an overdraft or loan facility against those units.

Yes. You can use the funds for personal, business, or other financial needs, as permitted under your loan agreement with ICICI Bank.

Individuals or NRIs who hold eligible mutual funds as per ICICI policy and meet ICICI Bank’s credit and documentation criteria can apply.

You generally need KYC (identity and address proof), mutual fund holding statement from your demat account, PAN card, and bank account details. Additional forms may be required as per ICICI Bank guidelines.

Yes, joint holders can pledge mutual fund units and apply for ICICI Bank Loan Against Mutual Funds if they meet eligibility criteria.

You can borrow up to 50% of the NAV for equity mutual funds and up to 80% of the NAV for debt mutual funds as loan value.

LTV is the percentage of the market value of pledged mutual funds that ICICI Bank will allow as a loan. For example, equity funds generally have a lower LTV than debt funds.

Yes. ICICI Bank periodically revalues your pledged mutual fund units and adjusts your loan limit accordingly.

If market value falls below the required threshold, ICICI Bank may ask you to pledge additional units or repay part of the loan to maintain the agreed LTV ratio.

ICICI Bank accepts a selection of approved mutual fund units registered with recognised transfer agents, as determined by the bank.

Yes, a processing fee and applicable taxes are charged as per ICICI Bank’s schedule of charges and disclosed before loan confirmation.

Prepayment and foreclosure terms, if applicable, are as per ICICI Bank’s policies and communicated at the time of sanction.

Interest is charged on the utilised portion of the loan at rates determined by ICICI Bank based on your profile and the type of mutual fund pledged.

Repayment tenures vary based on your loan terms with ICICI Bank and are shared at the time of sanction.

ICICI Bank Loan Against Mutual Funds (MF) provides a loan repayment tenure of one year with the option of renewal based on the performance of the Overdraft Account after the initial year.

Yes, prepayment is generally permitted subject to ICICI Bank’s terms and any applicable charges.

Missed repayments may attract penal charges and can have a negative impact on your credit score, as per ICICI Bank policy.

Yes, ICICI Bank provides clear information on all applicable charges including interest, processing, and service charges before loan approval.

Yes, ownership remains with you, but the units are held as collateral by ICICI Bank until the loan is repaid.

In case of default or failure to maintain LTV, ICICI Bank may liquidate pledged units as permitted under the loan agreement.

Yes, ICICI Bank follows RBI-regulated security standards to protect customer data and transactions.

Yes, the loan is secured by the mutual fund units pledged as collateral with ICICI Bank.

You can track the status of your ICICI Bank Loan Against Mutual Funds application via Net Banking, the iMobile App, or by contacting ICICI Bank Customer Care.

Processing times vary based on documentation and verification but are typically completed within a short period once all requirements are met.

You can contact ICICI Bank Customer Care, your relationship manager, or visit a branch for support.

Report any discrepancies immediately through ICICI Bank Customer Care or your branch for resolution.

You can apply by visiting an ICICI Bank branch or through your relationship manager using official ICICI Bank application channels.

You may pledge eligible mutual funds registered with recognised transfer agents as accepted by ICICI Bank.

Many facilities are renewable annually or as per ICICI Bank’s terms, subject to review of LTV and account performance.

Minimum loan amount typically starts from ₹50,000.This may change depending on fund value and bank policy.

Maximum limits for equity Mutual funds may be ₹20 lakh and for debt funds up to ₹1 crore or more based on application channel and eligibility.

Yes, interest under mutual funds overdraft loans is charged only on the utilised portion and for the period it is used.

Yes. Eligible customers can apply using Net Banking or the iMobile App for a paperless experience.

If pledged units increase in value, ICICI Bank may review and offer a higher limit subject to internal policy and LTV.

While ICICI Bank requires a minimum value of pledged funds (such as ₹50,000), NAV conditions depend on bank policy.

Yes, early closure is permitted after clearing all outstanding amounts and applicable charges.