Funds can't make mortgage loans, but they can make pledge loans. There are still some differences between mortgage and pledge. The following is a small series about whether the fund can be mortgaged. Let's have a look!
Can the fund be used as collateral?
Generally speaking, a fund is an asset that can be mortgaged, but it should be noted that it may not be mortgaged everywhere, depending on the regulations of various institutions. If it is stipulated that it can be mortgaged, it can be mortgaged. If not, it won't work. It depends.
It should be noted that if it is an open-end fund, it can be redeemed directly without mortgage, but after redemption, the fund will not pay immediately, only after the fund confirms its share. Under normal circumstances, it will be sent in a few days, and it will be extended a little when it comes to Saturday, Sunday and holidays.
Is it legal to buy a fund with a loan?
It is illegal to borrow money to buy funds, because the regulatory authorities clearly stipulate that bank credit funds are not allowed to flow into the securities market in violation of regulations. If it is discovered by the bank, it will recover the loan and cancel the installment business of other loans or credit cards under this user name. It is necessary to immediately settle the amortized installment principal and installment fee of the remaining installments.
So in general, this is not recommended. Doing so is risky and bad for your own reputation. Secondly, the fund is a kind of venture capital. If the fund market is not good and there is a loss, it will be even worse, and the loan money will also be lost, which will put more and more pressure on yourself. So when investing, you must be rational. It is not recommended to borrow money to buy funds. This is not good.
What are the procedures and conditions of mortgage loan?
1. Borrowers applying for personal property mortgage loans need to meet these conditions: they have full capacity for civil conduct, provide valid identification, residence certificate, marriage certificate and income certificate, have good credit, have a legal and stable job, and the property whose income can be fully repaid on time meets the requirements of the bank.
2. Under the condition of meeting the above requirements, the borrower can apply for a loan from the bank and submit his valid identity certificate, residence booklet, residence certificate, mortgage ownership certificate, mortgage consent certificate, mortgage evaluation certificate or tax payment certificate.
3. The bank shall examine and approve the application and loan information submitted by the borrower. After approval, the borrower signs a loan contract with the bank, and goes through mortgage registration and insurance procedures. After the bank transfers the loan amount to the account agreed in the contract, the borrower repays the loan on time.
Can I use the fund as collateral?
Generally speaking, a fund is an asset that can be mortgaged, but it should be noted that it may not be mortgaged everywhere, depending on the regulations of various institutions. If it is stipulated that it can be mortgaged, it can be mortgaged. If not, it won't work. It depends.
It should be noted that if it is an open-end fund, it can be redeemed directly without mortgage, but after redemption, the fund will not pay immediately, only after the fund confirms its share. Under normal circumstances, it will be sent in a few days, and it will be extended a little when it comes to Saturday, Sunday and holidays.