Short answer: SBI lends against mutual funds only, at a flat 11.50% with a 0.50% fee, up to ₹20 lakh on equity funds. HDFC Bank starts at 10.75%, lends against shares and funds up to ₹1 crore, and charges a flat ₹1,499 for digital applications.
Last verified: 12 October 2026 from each company’s official website and, where marked, its Google Play listing. Rates and fees change; the lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms. FundsTiger does not rank lenders.
HDFC Bank LAS vs SBI Loan Against Mutual Funds at a glance
| HDFC Bank LAS | SBI Loan Against Mutual Funds | |
|---|---|---|
| Type | Private sector bank | Public sector bank |
| Products | Loan Against Securities; Digital Loan Against Mutual Funds; Digital Loan Against Shares | Loan Against Mutual Fund units (no loan against shares listed) |
| Securities accepted | Shares, equity and debt mutual funds, insurance policies, NSC, KVP, bonds | Mutual funds registered with CAMS: equity, hybrid, ETF, debt, FMP |
| Loan amount | ₹30,000 to ₹1 crore against shares and equity funds | ₹25,000 to ₹20 lakh for equity funds (FAQ says ₹10 lakh); up to ₹5 crore for debt funds |
| Loan-to-value (LTV) | Shares 50%; equity funds 50%; debt funds 85%; insurance 80% of surrender value | Equity funds 50%; debt funds 75% |
| Interest rate | From 10.75% a year | 11.50% a year, floating (1-year MCLR + 2.5%) |
| Processing fee | ₹1,499 digital; ₹3,500 physical | 0.50% + GST (minimum ₹500, maximum ₹5,000; FAQ says ₹1,000 to ₹10,000) |
| Other charges | Annual maintenance ₹1,800 + GST; NOC nil | Renewal ₹1,000 + tax a year; no prepayment penalty |
| Tenure | Not stated | 12 months, renewable |
| How it works | Overdraft in a current account; interest on what you use | Overdraft; interest on what you use |
| Digital process | Digital LAMF and digital loan against shares | Yes, via YONO or net banking; CAMS lien by OTP |
| Who can apply | Not stated on the pages we read | Individuals over 18 with steady income; no NRIs |
| Also worth knowing | Widest list of securities; For personal use only, not for buying shares | Applies online 24×7; Not for buying shares or speculation |
RBI limits: banks can lend up to 60% against listed shares, 75% against equity funds and ETFs and 85% against debt funds and AAA bonds, with a ₹1 crore cap per person against shares and equity funds. NBFCs follow their own RBI rules (usually 50% on shares). Lenders can lend less. See our loan against shares and loan against mutual funds calculators.
What it costs to use ₹2 lakh for 6 months from a ₹5 lakh limit
We assumed a ₹5 lakh sanctioned limit, ₹2 lakh drawn for 6 months, interest paid monthly on the amount used, and the first-year processing fee (with GST where quoted before tax). Yearly renewal or maintenance charges, stamp duty and pledge charges are extra where they apply.
| Provider | Scenario | Rate a year | Interest | Fees | Total cost |
|---|---|---|---|---|---|
| HDFC Bank LAS | Starting rate, digital fee | 10.75% | ₹10,750 | ₹1,769 | ₹12,519 |
| SBI Loan Against Mutual Funds | Published rate | 11.5% | ₹11,500 | ₹2,950 | ₹14,450 |
Key differences
- Rate: HDFC Bank from 10.75%; SBI 11.50% (floating).
- Securities: HDFC Bank shares, funds, insurance, bonds; SBI mutual funds only.
- Limit on equity funds: HDFC Bank ₹1 crore; SBI ₹20 lakh (FAQ says ₹10 lakh).
- LTV on debt funds: HDFC Bank 85%; SBI 75%.
Which should you choose?
HDFC Bank LAS may suit you if you want a higher limit or to pledge shares too.
SBI Loan Against Mutual Funds may suit you if you bank with SBI and only need to pledge mutual funds.
Whichever you pick, compare the APR in the KFS you are actually offered, not the advertised starting rate.
Before you apply
- Check which of your holdings are on the lender’s approved list and the LTV for each type.
- Compare the processing fee on the whole limit and any yearly renewal fee, not just the rate.
- Keep a buffer: if markets fall, you may have to repay or pledge more within days, or the lender can sell your units.
- Use it for personal needs only. Lenders do not allow these loans to be used to buy shares or for speculation.
- Read the KFS: it must show the APR, every charge and how margin shortfalls are handled.
Want to see offers from several RBI-regulated lenders in one place?
Frequently asked questions
Can I get a loan against mutual funds from SBI online?
Yes, through YONO or net banking. CAMS marks the lien after an OTP, and SBI says sanction usually takes under 10 minutes.
What happens if NAVs fall?
Your drawing power falls. You may need to repay part of the loan or pledge more units quickly.
Are these lenders RBI-regulated?
The loans described here are given by RBI-registered NBFCs or banks named in the table. Check the lender named in your loan agreement on RBI’s digital lending app list.
Where do these figures come from?
From each company’s official website and, where noted, its Google Play listing, checked on 12 October 2026. Where a company’s own pages disagree, we show both figures.
Sources
Read more: LAS and LAMF rates of 10 lenders · Loan against shares calculator · Loan against mutual funds calculator · All loan app reviews · Lender directory
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Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.