Leverage on Your Mutual Fund

Get Loan on Your Mutual Fund

A Loan Against Mutual Fund (LAMF) is a type of Loan Against Security (LAS). It is a financial arrangement that allows individuals to utilize their mutual fund investments as collateral to obtain a loan from a financial institution or lender. This type of loan functions as an overdraft facility, where the bank or NBFC sets a borrowing limit based on the value of the mutual fund units.
However, you can easily opt for a digital loan against mutual funds an interest rate of 10.5%, lower than other traditional loans. The 100% digital process eliminates the need for lengthy paperwork and ensures a quick and seamless application process which can be completed in just 5 minutes. You can access over 6000+ mutual fund schemes that are registered with CAMS (Computer Age Management Services). Thus, while opting for LAMF, you don’t need to sell/redeem your mutual fund investments and continue earning returns on the pledged units.

Loans Against Mutual Funds

Instant Access to Credit: Life is unpredictable, and so are your financial expenses. Therefore, with a predetermined limit based on the fund type (i.e. debt and equity funds), you can avail the loan up to 45% for equity MFs and 75% for debt MFs. It offers immediate liquidity against the mutual fund units you own.
Lower Interest Rates: Availing a mutual fund pledged loan has never been this easy. You can easily avail a loan against mutual funds with an interest rate of 10.5% per annum, which is lower than personal loans and credit cards.
Loan Tenure: The default loan tenure for loans against mutual funds is 36 months. However, if you wish to close your secured loan on mutual funds earlier..
Lower Monthly Payments: By applying for a secured loan against mutual funds, you only need to pay interest every month on the borrowed amount. For example, if you borrow Rs. 1 lakh, you only need to pay Rs. 875 every month at an interest rate of 10.5% per annum, with a complete flexibility to repay the principal any time before the loan tenure ends.
Zero Foreclosure Charges: You can make a payment towards your outstanding mutual fund loan amount anytime with zero foreclosure charges.
Flexible Repayment: The mutual fund loan repayment features and terms are quite flexible if you opt for a loan on mutual funds. Choose to pay the principal amount anytime within the repayment period.

Get LAMF Within Hours: Applying for a mutual fund overdraft loan and waiting days for approval can be a frustrating experience. However, if you meet the eligibility criteria and have sufficient fund holdings, the entire process from application to disbursement will be completed in 2 working hours.
100% Digital Process: Now, you don’t have to visit banks or contact relationship managers. You can quickly complete your entire journey of availing a loan against mutual funds in just a few clicks on your mobile app.
Wide range of Mutual Fund Schemes: From a list of 6000+ mutual fund schemes, you can see how much loan you can take against your funds.
Select from a List of Approved Securities: Mutual fund companies work with CAMS & KFin (earlier known as KARVY) as their Registrars and Transfer Agents (RTAs). These RTAs mark liens against funds held in non-demat form only, based on which you can opt for a loan.
Retain Ownership: By pledging the mutual funds as collateral, you can access immediate funds while continuing to benefit from investment returns. This means you can keep investing and earning returns/dividends but won’t be able to sell/redeem your mutual funds.

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