Loan Against Securities,

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 utilised 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.

Sr. No	Shares/Equity Mutual Funds LTV	Debt Mutual Funds LTV	No. of days to regulate
1.	>45%	-	75 days
2.	>50%	>80%	7 days
3.	>55%	>85%	5 days
4.	>60%	>90%	3 days
5.	>65%	>95%	1 day

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.

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 pledged collateral value increases again the account is automatically regularized.

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.

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.

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

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 taken as a last resort to recover the outstanding amount.

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