Did you know you can borrow up to 80% of your MF portfolio value without selling units? We explain how Loan Against Securities works in India.
The Dilemma
You have a sudden financial emergency, but your mutual funds are performing well. Selling them means paying exit loads, capital gains tax, and losing out on future compounding.
The Solution: Loan Against Mutual Funds (LAMF)
LAMF allows you to pledge your mutual fund units to a bank or NBFC in exchange for an overdraft facility. You only pay interest on the amount you actually use, not the total sanctioned limit.
Benefits
- Retain Your Investments: Your portfolio continues to grow and earn dividends.
- Lower Interest Rates: LAMF rates are typically lower than personal loans because they are secured.
- Quick Processing: It's a completely digital process that can be completed in hours.