How to take loan digitally against mutual fund units?

To take loan digitally against mutual fund units, the customer must have online access to the bank account.

The concept of availing a loan against securities is known to many. Now, loans can be processed online with mutual funds as security. This requires no physical paperwork and can be availed within minutes.


The bank should have a tie up with the mutual fund registrar to offer this facility. The customer must have online access to the bank account. Login access to the mutual fund registrar’s (CAMS in this case) portal is also needed.

Net banking

Visit the bank website and click on “Loan against Mutual Funds.” Then type in the log in credentials of the net banking account.

Online form filling

After login credentials are validated, an online application form gets populated with details like customer name, email id and aadhaar number. Go through the terms and conditions and click on the proceed button.

myCAMS portal

Next, the myCAMS portal login page opens. Enter login id and password. List of all mutual fund holdings will be displayed on the screen with their current market value. The customer can choose the funds after which he/she can determine the eligibility of loan available against the security.

Opening current account

Once the customer is eligible for a loan, a current account can be created. Lien will be marked on the units selected as security. An overdraft facility will be provided after the current account is opened.

Points to note

1. Margin for equity funds is typically up to 50% and for fixed income securities it is upto 15%.

2. Banks decide the list of schemes that are approved to avail this facility.

3. A person without credit history can also avail this facility.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.


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