Loan Against Securities FAQs
All our loans come with the part-prepayment facility. With this, you can part prepay as much as you want during the tenor of the loan.
You will be charged a nominal processing fee upto 2%. The interest will be charged only on the amount you draw and for the period that you draw it. Also, the interest will be charged on a daily basis, but will be debited to your account only once a month/quarter.
the interest rate willl be between 10-18% based on the borrower's profile and company policy.
ratio of the loan amount outstanding to the value of any pledged security.
The Loan to Value or LTV currently offered against Loan against Mutual Fund, for equity mutual funds is upto 50% and for debt mutual funds is upto 90%. Please note that the above are subject to change depending upon the applicable regulations and internal policies of IIFL Finance.
No. The interest will be charged only to the loan amount that you have drawn down or the outstanding loan amount.
Interest on a loan against a security might be payable monthly, quarterly, or annually,subject to the terms of the loan agreement.
If the loan is not repaid, penal charges will be applied. IIFL Finance may also liquidate the pledged securites to recover the outstanding amount.
In case you fail to fulfill the shortfall within 7 business days, IIFL Finance holds the right to sell the pledged securites to cover the shortfall.
In case of interest bounce, the entire interest amount and other charges become overdue. IIFL Finance will request you to settle the overdue amount promptly using their Pay Now facility. If the overdue payment is not made within 30 days from the due date, IIFL Finance reserves the right to initiate liquidation proceedings.