Loan against mutual funds

Get a loan without selling your mutual funds

Loan against Mutual Funds

Get instant funds by pledging your mutual fund units.
Enjoy lower interest rates, quick approval, and zero impact on long-term wealth creation.

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Credit Card
24-36%

Consumer Loan
14-28%

Auto Loan
12-15%

Loan Against Mutual Funds
10.49 % Yes, it’s true! Lower interest rates than most loans.

What is a loan against mutual funds?

It’s a type of OVERDRAFT facility where you pledge your mutual fund units to get cash

Why choose loans against mutual funds?

Low Interest
Lower Interest Rates than personal loans

Stay Invested
Your mutual funds continue to earn returns

Flexi Cash
Withdraw & pre-pay anytime without penalty

Fast Fund Transfer
Get funds within 1-2 hours

Frequently asked questions

What is a loan against Mutual Funds?

With Loan against Mutual Fund, you offer your MF units as collateral for the loan. The lender holds the Mutual Fund units as a security till you repay the loan amount. Your Mutual Funds will continue to earn returns, but you cannot sell them while you have pledged them to the lender.

What are the documents required to get a Loan against Mutual funds?

1. Aadhar number
2. PAN number
3. Bank account number
4. IFSC code
5. You also need to have access to the mobile number associated with your Aadhar and bank account.

Which mutual fund schemes are eligible to take loans?

Loan against mutual funds is available for more than 8000+ mutual funds offered by various asset management companies (AMCs)in India. However, please note that ELSS tax saving funds with a date of purchase of less than 3 years (not matured) are not eligible for the loan.

Can I lien mark any mutual fund units of my choice?

We offer complete flexibility when it comes to choosing the mutual fund units you want to lien mark for setting up the loan limit. You have the freedom to change the schemes and units according to your preferences and create your own allocation for lien marking.

What are the interest rates and other charges?

Interest rates range from 10.49% to 12%, depending on the borrower’s credit profile. The processing fee starts from ₹999 and may vary, depending on the loan amount and applicable state stamp duty.

Do I have to pay interest on the complete line amount?

No, you do not have to pay interest on the complete line amount.
* LAS provides complete flexibility for the customer, and interest is only charged on the amount withdrawn.
* Interest is calculated daily based on the loan outstanding at the end of each day. Let’s look at a couple of scenarios to explain:
1. If the loan amount at the end of the day is zero, no interest will be charged for that day.
2. If an amount is withdrawn, used and repaid within 10 days, you will only be charged interest for the 10 days of utilization.

Can I choose any date for my monthly loan repayment?

Yes, the credit line facility offers 100% flexibility for principal repayment but the interest must be paid on specific mandate dates.

What is lien marking/pledging of Mutual Funds?

When you take a loan against your mutual funds, we lien mark/pledge your mutual fund units in the name of the lender, so that it cannot be redeemed/sold until you pay back the loan. The lien marking process is done 100% digitally and in real time.

When will my funds be unlienmarked?

You have the flexibility to request the removal of the lien from your mutual fund units at any time. Depending on your current loan amount and utilization, you can choose to remove the lien from specific mutual fund units or from all the units you have pledged.