If you have invested in mutual funds to build long-term wealth, chances are you do not want to redeem them in a hurry especially when markets are low. But what if you are suddenly faced with an urgent financial need? This is where a loan against mutual funds (also referred to as loan on mutual funds or loan against MF) steps in as a reliable solution. It enables you to tap into the value of your portfolio and get funds quickly without selling your investments. This means your compounding returns stay intact, and you still get the liquidity to handle immediate obligations.
Need funds without touching your investments? Apply for a loan against mutual funds in minutes digital, flexible, and transparent.
Check eligibility criteria
Before you move forward, it's important to ensure that you meet the standard loan against mutual funds eligibility conditions for a loan against MF. While specific requirements can differ depending on the lender, most providers will expect you to:
- Should be a resident of India
- Age of at t least 18 years old
- Should have mutual fund holdings (generally with a minimum value of Rs. 50,000 or higher)
- Maintain a valid KYC record
- Own mutual fund schemes that are listed and approved for pledging
Even if you are applying as a corporate, LLP, HUF, or trust, loans against mutual funds are still accessible under defined terms.
Not sure if you qualify? Check your eligibility instantly and see how much you can borrow no commitment required.
Evaluate loan amount eligibility
The amount you can borrow depends on the type and value of your mutual fund units. Mutual funds usually offer a loan-to-value (LTV) ratio up to 90% of NAV. So, if you hold mutual funds worth Rs. 5 lakh, you might be eligible for a loan of up to Rs. 4.5 lakh (depending on fund type and terms). Use this estimate to calculate the approximate loan amount and plan your finances.
Want to calculate your eligible loan amount? Try the loan against mutual funds calculator for an instant estimate.