Loan Against Mutual Funds

Your mutual fund investments can do more than build long-term wealth. With a Loan Against Mutual Funds, eligible investments may be used as security to access funds when you need liquidity—without necessarily redeeming your mutual fund units.

Whether you need funds for a personal requirement, business need, education, or an unexpected expense, this facility can provide a convenient way to access liquidity while your investments remain invested.

How Does a Loan Against Mutual Funds Work?

A Loan Against Mutual Funds allows you to pledge eligible mutual fund units as security against a loan facility.

Simple Process:

1. Check Eligibility

Your eligible mutual fund holdings are evaluated based on the applicable lender’s criteria.

2. Pledge Your Investments

Eligible mutual fund units are pledged as security for the loan.

3. Loan Approval

The lender determines the available loan amount based on the value and type of eligible investments.

4. Access Funds

Once approved, you can access the sanctioned funds as per the lender’s terms and conditions.

5. Continue Your Investment Journey

Your investments remain in place, subject to the pledge and applicable terms.

Why Consider a Loan Against Mutual Funds?

Quick Access to Liquidity

Access funds against eligible investments instead of immediately redeeming them.

Stay Invested

You may continue to participate in the potential growth of your investments while they remain pledged.

Convenient Financing Option

A loan against investments can be considered when you need funds without disrupting your long-term investment strategy.

Flexible Usage

Depending on the lender and facility, funds may be used for various personal or business requirements.

Potentially Cost-Effective

Interest rates and charges may be competitive compared with certain unsecured borrowing options. Actual terms depend on the lender and applicant profile.

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