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Benefits and Features of Loans Against Mutual Funds

  • Instant Liquidity: Get quick access to funds without having to sell your mutual fund investments.

  • Lower Interest Rates: Enjoy competitive interest rates, often lower than personal loans or credit cards.

  • 100% Digital Process: Apply and manage your loan entirely online with ease.

  • No Need to Sell Investments: Keep your mutual fund investments intact while accessing needed funds.

  • Flexible Loan Amounts: Borrow according to the value of your mutual fund holdings.

  • Quick Approval and Disbursement: Benefit from a fast approval process and swift disbursement of funds.

  • No Prepayment Charges: Repay your loan early without any penalties.

  • Transparent Terms: Clear and straightforward loan terms with no hidden charges.

  • Credit Score Improvement: Timely repayments can help improve your credit score.

Collateral Security: Your mutual fund units serve as collateral, offering a secured loan option.


Why Choose Loans Against Mutual Funds?

  • Efficient Use of Assets: Utilize your mutual fund investments to secure a loan without disrupting your financial plans.

  • Cost-Effective: Lower interest rates make it a cheaper borrowing option compared to unsecured loans.

  • Flexibility: Choose loan amounts and repayment terms that suit your financial needs.

  • Maintain Investment Growth: Continue to benefit from the potential growth and returns of your mutual fund investments.

  • Quick and Easy Access: The digital process ensures minimal paperwork and fast access to funds.

Preserve Investment Portfolio: Avoid selling investments during market downturns by opting for a loan instead.

Listen to our investors..

Priya Sharma
Priya Sharma
Financial Consultant, Trust Advisory

Offering loans against mutual funds has been a win-win for our clients. It provides them with immediate liquidity without having to sell their investments. The process was seamless, and our clients appreciated the flexibility it gave them during financial planning.

Amit Rao
Amit Rao
Investment Advisor, Nexus Wealth Management

Using mutual funds as collateral for loans has opened up new opportunities for our clients. They can access funds for personal or business needs while still benefiting from potential market gains. This innovative solution has made a significant impact on their financial strategies.

Rina Patel
Rina Patel
Senior Loan Officer, Future Finance

The option of taking loans against mutual funds has been a game changer for our clientele. It allows them to leverage their investments without liquidating them, ensuring they can meet urgent financial needs while maintaining their investment portfolio. We've seen positive feedback across the board!

Kevin Wu
Kevin Wu
Wealth Manager, Horizon Advisors

Loans against mutual funds have provided our clients with the liquidity they need, all while keeping their investments intact. This strategy has allowed them to pursue opportunities or cover unexpected expenses without disrupting their long-term financial goals. Highly effective!

Frequently Asked Questions

A loan against mutual funds allows you to borrow money by pledging your mutual fund units as collateral without selling them.
The loan amount depends on the value of your mutual fund holdings, typically up to 50-70% of the current market value.
Interest rates are generally lower than personal loans and credit cards, often starting around 9.5% per annum.
Most lenders charge a nominal processing fee, which can vary. Check with your lender for specific details.
The approval and disbursement process is usually quick, often within a few hours to a couple of days.
Yes, most lenders allow prepayment without any penalties or additional charges.
Your mutual fund units remain invested, and you continue to earn returns on them. They are only pledged as collateral.
Taking the loan itself doesn’t affect your credit score, but timely repayment can help improve it.
In case of default, the lender has the right to sell the pledged mutual fund units to recover the loan amount.
You can apply online through your lender’s website or mobile app by providing the necessary details and documents. The process is usually straightforward and digital.