Loan Against Mutual Fund

Get instant liquidity by pledging your mutual fund units without selling your investments. Continue earning returns while accessing funds.

Why Choose Loan Against Mutual Funds?

Instant Liquidity

Get funds within 24-48 hours. Quick disbursement without selling your valuable investments.

Keep Earning Returns

Your mutual funds continue to earn returns even while pledged. Never miss out on market growth.

Low Interest Rates

Competitive interest rates starting at 9.50% p.a. Much cheaper than personal loans or credit cards.

No Property Required

Zero collateral needed. Your mutual fund units serve as security for the loan.

Top Financial Institutions for Loan Against Mutual Funds

Bank / Institution Interest Rate (p.a.) Max Loan Amount LTV Ratio Processing Time Apply
ICICI Bank 9.50% - 12.00% ₹5 Crore Up to 50% 24-48 Hours Apply
HDFC Bank 9.75% - 12.50% ₹3 Crore Up to 50% 2-3 Days Apply
Axis Bank 10.00% - 13.00% ₹2 Crore Up to 45% 2-4 Days Apply
IndusInd Bank 10.50% - 13.50% ₹1 Crore Up to 40% 3-5 Days Apply
Bajaj Finserv 9.00% - 14.00% ₹2 Crore Up to 50% 24 Hours Apply
Kotak Mahindra Bank 10.25% - 12.75% ₹1.5 Crore Up to 45% 2-3 Days Apply

Loan Against Mutual Fund Eligibility

Eligible Mutual Funds

  • Equity Mutual Funds (Open-ended)
  • Debt Mutual Funds (Selected)
  • Hybrid Mutual Funds
  • ELSS (Tax Savings) Funds
  • Liquid Funds

Age Criteria

  • Minimum 21 years old
  • Maximum 65 years at loan maturity
  • Indian resident individuals
  • HUFs and Trust accounts eligible

Investment Requirements

  • Minimum investment of ₹50,000
  • Minimum 1 year holding period
  • Units in demat form mandatory
  • Clear and unencumbered units

LTV Ratio

  • Equity Funds: Up to 50% of NAV
  • Debt Funds: Up to 75% of NAV
  • Hybrid Funds: Up to 50% of NAV
  • Liquid Funds: Up to 80% of NAV

Documents Required for Loan Against Mutual Funds

Identity Proof

  • Aadhaar Card
  • PAN Card
  • Passport
  • Driving License

Mutual Fund Documents

  • Demat Account Statement
  • Latest NAV Certificate
  • Folio Number
  • Investment Transaction History

Financial Documents

  • Bank Statements (6 months)
  • ITR Returns (2 years)
  • Salary Slips (if salaried)

Uses of Loan Against Mutual Funds

Business Funding

Meet working capital requirements or business expansion needs

Education

Fund higher education or professional courses without redemption

Property Investment

Make down payment for a new property while keeping investments intact

Medical Emergency

Handle unexpected medical expenses without disturbing long-term investments

Personal Financial Needs

Meet wedding expenses, travel, or any personal financial requirements

Investment Opportunity

Leverage funds to grab time-sensitive investment opportunities

How to Apply for Loan Against Mutual Funds

1

Check Eligibility

Verify your mutual funds are eligible and check the LTV available on your portfolio

2

Select Loan Amount

Choose the loan amount you need (up to the sanctioned LTV limit)

3

Pledge Units

Submit your demat account details and authorize pledge of mutual fund units

4

Disbursement

Receive funds in your account within 24-48 hours

Key Benefits of Loan Against Mutual Funds

Stay Invested

  • Continue earning market returns on your funds
  • No need to redeem and lose potential gains
  • Tax implications avoided on redemption
  • Compounding benefits preserved

Quick Processing

  • Minimal documentation required
  • Online application and verification
  • Fast disbursement in 24-48 hours
  • No physical paperwork needed

Flexible Options

  • Choose your own loan tenure
  • Pay interest only or EMI options
  • Part-prepayment allowed without penalty
  • Top-up facility available

Get Instant Funds Without Selling Your Investments

Apply for Loan Against Mutual Funds today and unlock liquidity while keeping your investments intact

Apply Now

Loan Against Mutual Fund EMI Calculator

Calculate your monthly EMI instantly

₹1,000,000
10%
36 Months
Monthly EMI ₹32,267
Principal Amount ₹1,000,000
Total Interest ₹161,619
Total Amount Payable ₹1,161,619
Apply Now

Frequently Asked Questions

What is the maximum loan amount I can get against my mutual funds?

You can get up to 50% of your mutual fund's Net Asset Value (NAV) for equity funds and up to 75% for debt funds. The maximum loan amount varies by lender, typically ranging from ₹1 Lakh to ₹5 Crores.

Do my mutual funds continue to earn returns while pledged?

Yes! Your mutual fund units remain invested and continue to earn returns even while pledged. The gains or losses accrue to your account as usual. The pledge is only a lien on the units, not a redemption.

What happens if the value of my pledged funds falls?

If the value of your pledged mutual funds falls below the required LTV ratio, the lender may issue a margin call asking you to either pledge additional units or repay part of the loan to maintain the ratio.

Can I add more funds to my pledged portfolio?

Yes, you can purchase additional units in your demat account even after pledging. These new units can be added to your pledged portfolio to maintain or increase your loan eligibility.

Is there a lock-in period for Loan Against Mutual Funds?

Most lenders do not have a lock-in period for this loan product. However, some may charge a small processing fee. You can repay the loan anytime without prepayment penalties.

Which mutual funds are eligible for pledging?

Most liquid, equity, and debt mutual funds that are in demat form are eligible. However, tax-saving ELSS funds and closed-ended schemes may have restrictions. Check with your lender for the complete list of eligible schemes.