Frequently Asked Questions

Digital Loan Against Securities is a complete digital and paperless process wherein you can lien your mutual funds registered with “CAMS” or “Kfintech” (Registrar & Transfer Agents, RTAs) or pledge your Shares with NSDL, in few simple clicks to avail of an instant overdraft facility. Loan against mutual funds & shares can be availed against an approved list of equity and debt mutual funds or shares.

This facility is currently available for customers holding approved* mutual funds registered with CAMS, Kfintech or approved* shares held in demat account with NSDL. ( * Approved as per MAFS policy)

To avail this facility you should

• - Be resident Indian. Non-Resident Indians (NRIs) are currently not eligible for this loan.
• - Be between 18 to 75 years of age
• - Have a valid PAN & Aadhaar Card
• - Have a valid email id and mobile number
• - Have a valid bank account with net banking facility

The minimum amount is Rs 10,000/- and the maximum can go up to Rs 1 crore for equity mutual funds & shares and up to Rs. 3 crores for debt mutual funds.

LTV of 45% of the value of equity mutual funds, up to 45% of the value of shares and 80% of the value of debt mutual funds.

Securities can be depledged online partially or completely.

1) For partial security depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click security withdrawal.
• - Select loan account & application number under which securities are pledged.
• - Select the securities and number of units to depledge.
• - Click calculate to check revised collateral value, revised available limit & revised total limit.
• - Verify via OTP authentication. Your request is submitted.

Your request will be reviewed and processed accordingly. The securities will be released within 24 working hours.

2) Complete security withdrawal can be only done during loan foreclosure.

For complete security depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click foreclosure.
• - Select loan account to foreclose.
• - Verify via OTP authentication.
• - You will receive closure simulation letter on registered email.
• - Check ‘Total amount receivable’ field & clear it the same day before 12.00 am (Night).
• - Write to mcare@miraeassetfin.com once total amount receivable is paid. If total amount receivable is zero, no further action is needed.

Your request will be reviewed and processed accordingly within 48 working hours and sent to RTA for depledging. RTA will release the securities within 5 working days. If total receivable amount is not cleared the same day your foreclosure request will be closed, and loan will remain active.

Please Note: Foreclosure requests will not be accepted between the last working day of the month to 3rd working day of the next month due to monthly interest debit activity.

Complete security withdrawal can be only done during loan foreclosure

For foreclosure of loan account follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click foreclosure.
• - Select loan account to foreclose.
• - Verify via OTP authentication.
• - You will receive closure simulation letter on registered email.
• - Check ‘Total amount receivable’ field & clear it the same day before 12.00 am (Night).
• - Write to mcare@miraeassetfin.com once total amount receivable is paid. If total amount receivable is zero, no further action is needed.

Your request will be reviewed and processed accordingly within 48 working hours and sent to RTA for depledging. RTA will release the securities within 5 working days. If total receivable amount is not cleared the same day your foreclosure request will be closed, and loan will remain active.

Please Note: Foreclosure requests will not be accepted between the last working day of the month to 3rd working day of the next month due to monthly interest debit activity.

During the application process based on the selected type of loan, users will be prompted with respective RTA or DP options to pledge securities online.

At the lien marking/ pledging stage

• - Users can select either CAMS or KFintech
• - Use login credentials of CAMS or KFintech or NSDL DP to login
• - Users will be shown all the eligible securities
• - Select the securities to be pledged & number of units/shares to be pledged
• - Calculate the eligible amount
• - Enter required amount. Your approved limit is determined by the required amount.
• - Proceed with lien marking & authenticate via OTP
• - Post this stage your securities will be pledged.

Please Note:

• - Use login credentials (Email, Phone or PAN) of RTA/ DP holding the security.
• - Post completing steps to pledge shares with NSDL, users’ respective DP needs to approve the same to successfully pledge.

Since Digital Loan Against Securities is a complete digital and paperless process your Loan Against Securities overdraft limit will be approved and functional instantly. You can make withdrawal requests or make repayments 24*7 on all days of the week. Any withdrawal request raised till 5pm will be processed on the same day within 4 working hours. Requests raised after 5pm will be processed the next working day.

Follow easy steps to avail loan against your securities:

• - Register via Web or App.
• - Select type of loan & apply.
• - Select type of mutual funds in case of Loan Against Mutual Funds (viz equity or debt mutual funds)
• - Complete one-time KYC registration with PAN & Aadhar details (Details can be fetched directly from Digilocker if your Aadhar is linked with your mobile number)
• - Enter bank account & additional details.
• - Pledge securities online as collateral via CAMS, KFintech or NSDL platform with OTP authentication.
• - Verify your bank account via Net banking/ Debit card.
• - Read & sign loan agreement online.
• - Your Loan Against Securities limit is ready.

You can write to our customer service team at mcare@miraeassetfin.com or contact us at 1800 2099 180 (Monday to Friday 9 am to 6 pm, excluding holidays) in case you face any issues while applying for ‘Digital Loan Against Securities’.

Yes, you can enhance your loan digitally via Web or Mobile App. Follow below simple steps to apply for top-up.

• - Login to your account.
• - On web, click “Top-up” option & select loan account. On App, click “Top-up” on the loan account card.
• - Enter additional details.
• - Pledge securities online as collateral via CAMS, KFintech or NSDL platform with OTP authentication.
• - Your Loan Against Securities limit is enhanced.

Securities can be depledged online partially or completely.

1) For partial security depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click security withdrawal.
• - Select loan account & application number under which securities are pledged.
• - Select the securities and number of units to depledge.
• - Click calculate to check revised collateral value, revised available limit & revised total limit.
• - Verify via OTP authentication. Your request is submitted.

Your request will be reviewed and processed accordingly. The securities will be released within 24 working hours.

2) Complete security withdrawal can be only done during loan foreclosure.

For complete security depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click foreclosure.
• - Select loan account to foreclose.
• - Verify via OTP authentication.
• - You will receive closure simulation letter on registered email.
• - Check ‘Total amount receivable’ field & clear it the same day before 12.00 am (Night).
• - Write to mcare@miraeassetfin.com once total amount receivable is paid. If total amount receivable is zero, no further action is needed.

Your request will be reviewed and processed accordingly within 48 working hours and sent to RTA for depledging. RTA will release the securities within 5 working days. If total receivable amount is not cleared the same day your foreclosure request will be closed, and loan will remain active.

Note: Foreclosure requests will not be accepted between the last working day of the month to 3rd working day of the next month due to monthly interest debit activity.

Yes, you can partially depledge securities digitally without visiting a branch or any physical paperwork. If you want to replace one security with another, you will have to complete depledge of the security via partial security withdrawal facility & add another security using top-up facility.

The revised eligible limit will be calculated on the basis of revised collateral value of underlying securities. Eligible limit = Collateral value x LTV%.

For partial security depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click security withdrawal.
• - Select loan account & application number under which securities are pledged.
• - Select the securities and number of units to depledge.
• - Click calculate to check revised collateral value, revised available limit & revised total limit.
• - Verify via OTP authentication. Your request is submitted.

Your request will be reviewed and processed accordingly. The securities will be released within 24 working hours.

Note: Security withdrawal charges of Rs 500/- + Taxes will be applicable in case of partial security withdrawal. There are no charges for the foreclosure of loan account.

There is no lien marking charge applicable at the time of application or depledging charges at the time of closure of the loan account. Pledging additional securities (Top-up) or depledging securities partially (Security Withdrawal) will attract a charge. You can refer to the schedule of charges from here.

An interest rate of 9.5% p.a. is charged only on the utilized amount and for the number of days you utilize the amount. The interest is calculated on the utilized amount daily at the end of day, Interest = (utilized amount x interest rate)/ 365. The interest will be accrued till the end of month and will be due on 1st working day of every month. The same will be debited on the 3rd working day of next month from your registered Bank Account via NACH mandate. You will be notified on your registered email ID to maintain sufficient balance.

Note: Payments made via Pay Now facility will not be adjusted against the interest amount.

Example: Vijay availed a loan against securities by pledging equity securities of value Rs.10 lakhs and got an eligible limit of Rs.4.5 lakhs (assuming the pledged securities have an LTV of 45%). He made a withdrawal of Rs.1 lakh on 5th Jan 23 and Rs.1 lakh on 10th Jan 23. Vijay repaid Rs.1 lakh on 20th Jan 23 and Rs.1 lakh on 25th Jan 23. Vijay will receive an intimation on 1st Feb 23 to maintain sufficient balance to pay interest of [(9.5%/365) x {(5x1,00,000) + (10x2,00,000) + (5x1,00,000)}] = Rs.781 which will be auto debited on the 3rd Feb 23.

Securities value changes on a daily basis. Since the eligible limit of the loan account is dependent on the underlying collateral value (Eligible limit = collateral value x LTV%), the eligible limit of the loan account also changes as per change in collateral value. This revaluation of loan account happens on a daily basis. NAV as on previous day’s closing is considered to calculate collateral value.

Example: Arun has availed loan against securities by lien marking or pledging securities worth Rs 10 lakhs. The eligible limit of his account is Rs 4.5 lakhs (10 lakhs x 45% LTV) (assuming an LTV of 45%). If the value of underlying securities drops to 9.5 lakhs, the revised eligible limit will drop to 4.05 lakhs (9.5 lakhs x 45% LTV).

Loan Against Securities facility is provided for one year and gets renewed automatically, basis satisfactory performance of the account, after one year. In case, if you do not wish to renew the facility, he/she needs to place a request for closure of the account prior to renewal.

Please Note: On successful renewal, a renewal fee of Rs 999/- + Taxes is applicable.

The list of approved mutual funds & shares is available on loan against mutual funds & shares pages on web & app respectively. If you are not able to find the approved list or have queries, you can write to customer support at mcare@miraeassetfin.com or reach out at 1800 2099 180.

Yes, you will still be able to complete the process. We pass your email id to myCAMS & check for registry details. If not registered, you will be navigated to the myCAMS registration page, you can complete the registration process and can log in and continue the journey.

You can change the password in myCAMS page upon clicking the forgot password option and follow the instructions. Upon changing the password successfully, you can continue the journey to avail of the facility.

On loan account creation an overdraft limit will be set up with MAFS. This account will have an available limit, which you can withdraw as and when you require it up to the available limit. Every time you withdraw money from the account available limit drops with same amount & vice versa when you make repayment. There is no capping & charges on number of money withdrawals & repayments made.

To withdraw money from your Loan Against Securities

• - Login to your account via Web or App
• - Click “Withdraw Now”
• - Enter the amount you want to withdraw.
• - Authenticate with OTP

Done, money will be credited directly to your bank account.

Your withdrawal request may take up to 4 working hours to process. Any request received after 5 pm and on a non-working day will be processed on the next working day.

Yes, you can prepay your loan as per your convenience without any charges. There is no capping on number of repayments made.

To make prepayment/ repayment

• - Login to your account via Web or App
• - Click “Pay Now”
• - Select loan account & enter the amount you want to Pay.
• - On submit, you will be navigated to Billdesk.
• - Use Netbanking, UPI or Debit card to complete payment.

Done, money will be adjusted to your Loan Against Securities account.

Please Note: Interest payments cannot be made via Pay Now facility. Payments made via Pay Now facility will only be adjusted against principal amount.

The securities in the overdraft account are revalued everyday. If the value of your securities drops, the eligible limit of your overdraft account also drops, (revised collateral value x LTV%). If the utilized amount is more than the revised eligible limit, the difference between the eligible limit and the utilized amount is considered to be overdue. In such cases a demand is made asking the borrower to clear the overdue amount either by making payment towards the overdue amount or pledging additional securities. This is known as a margin call. The borrower needs to clear the overdues in stipulated time as per below table. If their value increases, your eligible limit automatically increases and if utilized amount is less than revised eligible limit then your account will not have overdue amount.

Example: Arun has pledged securities of worth Rs.10 lakhs and has created an OD account with eligible loan limit of Rs.4.5 lakhs (45% of 10 lakhs). Arun has utilized this entire limit by withdrawing Rs.4.5 lakh. If the value of the pledged securities drops to Rs.9.5 Lakhs due to market volatility. The eligible limit is revised to Rs.4.27,500 (45% of 9.5 lakhs). Since the utilized amount is more than the eligible amount, Arun will receive a margin call of Rs.22,500 (4,50,000-4,27,500). Since the utilized amount falls within the initial range (45 to 50%) as shown in the table below, he has a grace period of 75 days to clear the overdue amount in his loan account.

In case of interest bounce, the entire interest amount and other charges become overdue. The borrower will be requested to make overdue payment using the Pay Now facility. If the borrower fails to make overdue payment within 74 days, Mirae Asset Financial Services reserves the right to invoke/ sell the underlying securities to the extent of overdue amount and recover.

The account can also enter in overdue state if the value of securities drop and the utilized amount is more than the revised eligible limit. The difference between the utilized amount and the revised eligible limit in such case becomes overdue.

You may deposit additional cash equivalent to the overdue amount or deposit additional securities via top-up. If the pledged collateral value increases again the account is automatically regularized.

At present, it is not possible to digitally lien mark or pledge Mutual Funds held in demat form through Mirae Asset Financial Services.

Mutual funds from both CAMS and Kfintech can be lien marked or pledged in a single loan account. You will have to create a loan account by lien marking or pledging mutual funds with any one RTA. Post the loan creation you can use the top-up facility to lien mark or pledge mutual funds from other RTA. You will get a single loan account with an eligible amount calculated based on mutual funds lien marked or pledged from both RTAs.

Note: Processing fee of Rs 999/- + Taxes will be applicable for the first loan & a Top-up fee of Rs 500/- + Taxes will be applicable for Top-up.

To pledge both Equity Mutual Funds and Debt Mutual Funds, two separate loan accounts will have to be created.

You may check the list of banks facilitating e-mandate process here https://www.npci.org.in/PDF/nach/live-members-e-mandates/Live-Banks-in-API-E-Mandate.pdf

An eMandate serves as a digital payment solution that enables Indian businesses to easily collect recurring payments without the need for human intervention. Mandate limit refers to the maximum permissible amount that can be deducted from the account holder's bank account through an automated payment system. However deductions on your account will only be as per actuals.

Loan against securities is provided as an overdraft facility. Hence there is no fixed repayment schedule or EMI for the principal amount. You can make principal repayments anytime during the loan tenure as per your convenience. You will be charged only interest on a monthly basis which will be auto debited from the registered bank account. Interest is calculated based on the utilized amount and for a number of days the amount is utilized.

Yes, lien marking or pledging of securities is safe. The pledging of securities happens at the RTAs (CAMs and/or Kfintech) or Depository (NSDL), firms registered with SEBI with proper authentication.

At present, it is not possible to digitally lien mark or pledge Shares held with CDSL through Mirae Asset Financial Services.

If your loan account creation fails after pledging the securities, your securities will be absolutely safe and secure since the lien marking or pledging happens at RTAs/Depository. You can reach customer support at 1800 2099 180 (Monday to Friday, 9am to 6pm) or write at mcare@miraeassetfin.com. The support team will either clear the issue faced or send your securities for depledging to RTAs/depository.

Mirae Asset Financial Services has the authority to sell your securities under specific circumstances. This typically occurs in situations where regulatory requirements or legal obligations necessitate the sale of these funds.

If the overdue amount due to one of the below reasons is not repaid in the stipulated time as per the agreed terms and conditions, Mirae Asset Financial Services has the authority to sell your securities.

• - Failed interest payment or
• - Drop in value of your securities where utilization is more than eligible limit or
• - On maturity where the outstanding amount is not repaid

This action is considered as a last resort to recover the outstanding amount.

On maturity, you have an option of renewing your loan account for further 12 months. If renewed, any principal amount utilized is carried forward to the next year. If you wish not to renew your loan account, you will be requested to repay the outstanding amount before maturity date. The utilized amount if any on maturity will become overdue and the same needs to be repaid within 7 days.

Close-ended or locked-in units of mutual funds are not part of the approved list of mutual funds. Lock-in free units of ELSS/ Tax saver funds are eligible for pledging or lien marking and availing loan against mutual funds. You can check approved list of mutual funds from https://www.miraeassetfin.com/pdf/Approved-List-Of-Mutual-Funds.pdf

If the money is debited from the bank account and is not reflected in the loan account, the transaction may be pending at your bank's end for settlement. It will reflect in the loan account within 72 working hours or the amount will be refunded back to your bank account. If the transaction remains pending beyond this timeframe, please contact your bank, as the transaction is still in process/pending on their end. Payment is considered successful upon reflection or settlement within Mirae Asset Financial Services' system; additionally, interest will accrue (if applicable) until the settlement date.