B-1, B-Wing, Heera Panna
Haji Ali, Cumballa Hill
Mumbai, Maharashtra 400026
India
Mon. – Sun:
9:00am - 9:00pm
B-1, B-Wing, Heera Panna
Haji Ali, Cumballa Hill
Mumbai, Maharashtra 400026
India
Mon. – Sun:
9:00am - 9:00pm
Avail Loan Against Mutual Funds Without Impacting Your CIBIL Score
Unlock Cash From Your Investments
Don't Sell, Borrow Smartly with a Loan Against Mutual Funds.
Access liquidity without disrupting your long-term investment goals. Get a loan in minutes using your existing mutual funds.
What is a Loan against Mutual Fund ?
Loan Against Mutual Funds (LAMF) is a loan that customers can obtain by using their mutual funds as collateral.
Collateral-Based Loan
LAMF is a type of secured loan that uses mutual fund units as collateral. This means that you can borrow money by using your mutual fund units as a guarantee for the loan. It provides a way for individuals to access funds without having to liquidate their mutual fund holdings.
Flexibility in Loan Amount
The loan amount is determined based on the assessed value of the mutual funds you pledge as collateral and the lender's loan-to-value (LTV) ratio. Therefore, the flexibility in loan amount is contingent on these factors and may vary accordingly.
Attractive Interest Rates
LAMF generally provides more attractive interest rates compared to unsecured loans because they require collateral. This lowers risk for the lender and allows them to offer better terms for borrowers.
Minimal Impact on Investment
You can maintain ownership of your mutual funds, which helps to sustain your potential growth and have a minimal impact on your investment.
Why Choose a Loan Against Mutual Funds?
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Get Started in 3 Easy Steps
Eligibility for Loan Against Mutual Funds (LAMF):
- Age: Between 18 and 65 years old (may vary depending on a lender).
- Minimum Investment: A minimum value of ₹ 50,000 in your mutual fund portfolio (may vary)
- Mutual Fund Scheme: Holding funds approved by specified registrars like CAMS & KFintech (RTAs). Debt and ELSS funds are often excluded.
- Residency: Indian residency is mandatory
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Frequently Asked Questions (FAQs)
What is a Lone Agent Mutual Fund(LAMF) ?
A: A Loan Against Mutual Funds (LAMF) is a secure way to borrow money by using your mutual fund investment as collateral. With this option, you can access cash while keeping your mutual funds intact, which can be beneficial in meeting financial needs without compromising your long-term investment objectives
What happen to my credit score when i apply for a LAMF?
A: LAMF loans typically do not require a hard credit inquiry, so your credit score is minimally affected. Some lenders may perform a soft inquiry, which does not impact your score
Can I prepay a LAMF?
A: Yes, prepayment is generally permitted for LMAFs but be aware that certain lenders may enforce a prepayment penalty if done too soon. It is important to carefully go through the loan terms to know about any potential prepayment fees.
How much can I borrow with a LAMF?
The maximum loan amount you can get is between 50% and 70% of the total mutual fund value.
What are the tax implications of a LAMF?
A: It is important to note that the interest paid on a loan against mutual funds is typically tax-deductible, just like with other types of loans. However, it is always a good idea to seek the advice of a tax professional for personalized guidance based on your prevailing circumstances.