Frequently Asked Questions
At present, it is not possible to digitally lien mark or pledge Mutual Funds held in demat form through Chinmay Finlease Limited.
To apply, you must:
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Be a resident of India
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Be between 21 and 60 years of age
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Hold eligible mutual fund investments worth at least ₹20,000
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Lien marking or pledging of mutual funds means holding mutual fund units as collateral for a loan. The units remain invested but cannot be redeemed or transferred until the loan is repaid.
Your mutual fund units are lien-marked/pledged as collateral but remain under your ownership. You continue to receive dividends or capital gains, but cannot redeem the units until the loan is repaid.
Yes, you have complete flexibility in choosing which mutual fund units you want to lien mark to set up the limit. You can change the schemes and units and have your own allocation for lien marking.
Pledged mutual fund units are valued daily based on market prices. If the portfolio value falls and the loan exceeds the permitted limit, a margin shortfall may arise. In such cases, you may receive a margin call requesting you to repay part of the outstanding amount to maintain the required loan limit.
If you fail to rectify the shortfall within the stipulated time, Chinmay Finlease Limited may redeem (sell) the pledged mutual fund units to recover the difference amount.
If a payment bounces, the entire Outstanding amount and other charges become
overdue. You will be requested to make the overdue payment using the Pay Now
facility. If you fail to do so within the stipulated time, Chinmay Finlease Limited reserves the right to sell the underlying mutual fund units to recover the amount.
Yes, both salaried and self-employed individuals can apply, subject to eligibility.
No. Since a Loan Against Mutual Funds is a secured loan backed by your eligible mutual fund investments, there is no mandatory requirement to provide income proof or have a credit history.
You may be able to borrow approximately 50% to 80% of your eligible mutual fund holdings.
Pledged mutual fund units cannot be redeemed until the loan is repaid and the pledge is released.
The pledge is removed, and you regain full control of your mutual fund holdings.
Yes, marking a lien on mutual funds or pledging them is safe. The pledging of mutual funds occurs at the RTAs (CAMs and/or Kfintech) and at firms registered with SEBI, with proper authentication.
Chinmay Financial Limited has the authority to sell your mutual funds under specific circumstances. This typically occurs when regulatory requirements or legal obligations necessitate the sale of these funds.
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On maturity, where the outstanding amount is not repaid
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Failed EMI Payment
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When a shortfall/margin call occurs, and payment is not received to adjust the predefined loan-to-value ratio.
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For any assistance concerning a loan against mutual funds, you can write to us at support@chinmayfinlease.com