Are there any foreclosure charges to close a loan before the tenure ends?
No, there are no foreclosure or early repayment charges on this loan, you can repay anytime to save the interest.
What happens if I make a repayment in non-working hours?
If you make a repayment outside of regular working hours, it will be processed on the next business day. Any interest on the amount you've repaid will be calculated up to the date when it's processed. For instance, if you make a repayment on a Friday night and the following Saturday is a bank holiday, your repayment will be processed on the following Monday, and the interest will be calculated accordingly.
What is the frequency of interest payments?
Interest on a loan against mutual funds facility is payable monthly.
What is the interest payment cycle for a loan against mutual funds?
On the 7th day of every month (or in the next 3 working days), auto-debit happens for interest accrued in the previous month. This interest amount will be visible on the loan dashboard from 1st of each month till the day when due interest is received by the lender.
You may refer to the lender's interest calculation email, sent at the start of each month, for the interest accrued in the preceding month and due for an auto-debit.
What should I do if a payment is not reflecting on the loan dashboard?
If you don't see your payment on your loan dashboard within 6 working hours, please reach out to our support team and provide them with a screenshot of the transaction for assistance.
Is my interest applicable to the entire loan limit?
No, the interest is charged only on the loan amount that you have drawn down (i.e. the outstanding loan amount). The interest is calculated at the end of each day, based on the outstanding loan amount at the time. This daily accrued interest for a calendar month then gets auto-debited on 7th of the next month (or in the next 3 working days).
At the start of each month, the lender also shares an email with a daily interest calculation report for the preceding month.
What will happen if an interest repayment is not made?
If you miss an interest payment, you are liable to pay a bounce charge of Rs. 1200. A penal interest of 2% per month will be charged on the due interest amount from the date auto-debit failed until the date of payment of the overdue amount.
Do I need to repay the loan with EMI on a monthly basis?
There is no EMI associated with this loan. You can repay the outstanding principal amount, either fully or partially, at any time you want. Every month, only the interest on your withdrawn amount will be auto-debited from your linked bank account.
Further reading:
Charges for your loan application