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Loan Against Mutual Funds

Unlock liquidity without selling.

Pledge your mutual fund units and get an instant overdraft at interest rates far below a personal loan — while your investments stay invested and keep compounding.

~9%
Interest from (p.a.)
80%
Max loan-to-value
₹1 Cr+
Sanction limits
24 hrs
Typical disbursal
Documents

Loan Against Mutual Funds factsheet.

PDF Document

Loan Against Mutual Funds Factsheet

The latest loan against mutual funds factsheet, curated by our research desk.

What you get

Everything that makes Loan Against Mutual Funds simple.

Stay invested

Your units are only pledged, never sold. You keep the upside, dividends, and long-term compounding while borrowing against them.

Rates from ~9% p.a.

Interest is charged only on the amount you use, not the full sanctioned limit — dramatically cheaper than personal loans or credit cards.

Instant digital pledge

Pledge equity or debt funds online via CAMS/KFintech in minutes. No paperwork, no branch visit, no income proof for most limits.

Overdraft, not EMI

Draw and repay any amount, any time. Interest accrues only on the outstanding balance — ideal for short-term cash-flow gaps.

Loan-to-value up to 50–80%

Borrow up to 80% against debt funds and up to 50% against equity funds, subject to lender norms and scheme eligibility.

No prepayment penalty

Repay whenever you like without charges. Unpledge your units the moment the outstanding is cleared.

How it works

Four steps from discovery to ownership.

  1. 01

    Check eligibility

    Share your mutual fund holdings. We compute your sanctioned limit across eligible equity and debt schemes instantly.

  2. 02

    Pledge online

    Authorise the lien digitally through CAMS/KFintech with an OTP. Your units are marked as pledged — you still own them.

  3. 03

    Draw funds

    The overdraft limit is activated in your account. Withdraw part or all of it whenever you need liquidity.

  4. 04

    Repay flexibly

    Pay interest only on what you use. Clear the balance any time and release the pledge on your units.

Selling good funds to raise cash is a decision you often regret at the next market high. A loan against mutual funds keeps you invested and liquid at the same time.

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