Frequently Asked Questions

Your Mutual Funds will be sold if you fail to repay the loan on time.

Also per Regulatory Authorities guidelines, you cannot have LTV beyond a certain limit. However, in cases of extreme market downturns, your pledged mutual funds can be sold if you fail to reduce the LTV within the stipulated timeframe. 

Let's say the markets crash, and the value of your pledged Mutual Funds come drastically down. For example, you had pledged Mutual Funds worth ₹1,00,000 to get a ₹80,000 loan. Now, after the market crashes, your pledged Mutual Funds' value goes down to ₹50,000. Now, against ₹50,000, you'd have got a lesser loan amount but not ₹80,000. To cover this risk, a margin call happens where you have to pay an amount to bridge the gap. If you don't resolve the margin call, our lending partner may sell your pledged Mutual Funds partially valued at your outstanding balance.