Ever felt stuck between selling your mutual funds and applying for a high-interest personal loan? You're not alone. Many investors face this dilemma when urgent financial needs arise whether it’s a sudden medical bill, education fee, or an unforeseen family event. But here’s something you might not have considered: You don’t have to choose between your future gains and immediate needs. With a Loan Against Mutual Funds (LAMF), you can unlock liquidity without redeeming your investments.
You do not need to sell your mutual funds for temporary needs. Instead borrow against them and keep your long-term gains intact. Apply for loan against mutual funds now
What is a loan against mutual funds?
A loan against mutual funds is exactly what it sounds like you pledge your mutual fund units as collateral and borrow money against them. Since these are secured loans, lenders like banks and NBFCs are willing to offer better terms, lower interest rates, and quicker disbursals.
The best part? Your investments remain intact and continue to generate returns even while being pledged.
Key benefits of loan against mutual funds
Let’s break down why this borrowing option is gaining popularity:
- No need to liquidate: Your investments stay where they are. They keep growing while you take care of urgent needs.
- Faster access to funds: You can apply online and receive funds in your bank account quickly often within 24–48 hours.
- Lower interest rates: Because it’s a secured loan, the rates are much more attractive than personal loans or credit card EMIs.
- Pay for what you use: Interest is charged only on the amount you actually draw, not the entire sanctioned limit.
- Short-term flexibility: Perfect for temporary needs like medical emergencies, higher education, or large purchases.
Why break your SIP or redeem at a market low? Use your mutual funds as leverage instead. Apply in minutes
Why take a loan against mutual funds instead of selling them?
When faced with urgent financial needs, many investors instinctively think of liquidating their mutual funds. But doing so can result in capital gains tax, exit load charges, and worst of all losing out on the potential market growth that your investments might deliver in the future.
By choosing a Loan Against Mutual Funds (LAMF), you avoid these consequences. Your portfolio stays intact and continues to earn returns even while it's pledged as collateral.
Unlike unsecured, a loan against mutual funds offers lower interest rates, flexible repayment, and the peace of mind that comes from borrowing against your own assets. Plus, you pay interest only on the amount you actually use, not on the entire sanctioned limit.
This isn’t just borrowing its borrowing with strategy.
