Instant emergency cash. Zero disruption to your long-term wealth.
Let our team assist you with quick, secure, and hassle-free collateral onboarding.
Request a Call BackLoan Against Mutual Funds (LAMF)
Liquidity without portfolio disruption. Access an overdraft facility or loan limits against mutual funds while keeping your core investment compounding journey completely intact.
How it works: You electronically pledge your mutual fund units to a partner bank or NBFC as collateral. The lender sets up a revolving credit limit in your bank account, and you only service interest on the exact amounts you withdraw.
The Smart Way to Manage Cashflow
Redeeming mutual funds during a market dip or before your goal date can be costly. Loan Against Mutual Funds (LAMF) allows you to borrow against your holdings at a fraction of the cost of a personal loan. You only pay interest on the amount utilized, making it the perfect tool for short-term financial needs.
Interest Rate Comparison: LAMF vs Personal Loans
*Actual interest savings and terms depend entirely on the applicant's credit score (CIBIL), verified income stability, value of the underlying collateral, and the lending institution's internal underwriting policies.
Digital processing & Zero Collateral (Non-investment assets)
Experience a 100% paperless process. Pledging is done completely online through mutual fund registrars (CAMS/KFintech) within 24 to 48 hours.
LAMF Key Features
| Feature Parameter | Equity Mutual Funds | Debt Mutual Funds |
|---|---|---|
| Loan-to-Value (LTV) Cap | Up to 50% of the Net Asset Value (NAV) | Up to 80% of the Net Asset Value (NAV) |
| Loan Value Limits | ₹10,000 to ₹20 Lakh (Digital) | ₹10,000 to ₹1 Crore |
| Interest Charge Basis | Reducing balance interest / Overdraft (OD) limit | Reducing balance interest / Overdraft (OD) limit |
| Prepayment Charges | Nil (Zero prepayment or foreclosure penalties) | Nil |
Our Support Process
Portal Registration
Linking your mutual fund portfolio securely through registrar-authorized digital platforms.
Lien Pledging
Marking an electronic lien against selected units online via CAMS or KFintech.
Account Setup
Setting up the overdraft limit in a partner bank account with full operational access.
Flexible Interest Servicing
Paying interest exclusively on the amount withdrawn and for the exact days utilized.
Frequently Asked Questions
What is a Loan Against Mutual Funds (LAMF)?
It is an overdraft facility set up by a partner bank or NBFC against your mutual fund holdings as collateral. It provides instant liquidity without requiring you to redeem your investments.
Do I forfeit my mutual fund returns while the units are pledged?
No, you do not forfeit your mutual fund returns while the units are pledged. Pledging only places a lien on the units. You continue to remain the owner, meaning your mutual fund units continue to grow, reinvest, and accumulate dividends and capital gains normally.
What happens if the market value of my mutual funds falls?
Since mutual fund values are market-linked, if the NAV drops significantly below the LTV threshold, the partner lender may request you to pledge additional units or pay down a portion of the outstanding balance to restore the required margin.