Loan Against Mutual Fund

Overview

A Loan Against Mutual Fund (LAMF) offers a smart way to generate immediate liquidity without liquidating your investments. By marking a lien on your mutual fund units, lenders provide you with a credit line or a term loan. This ensures your portfolio remains untouched and continues to generate potential returns.

Whether you hold equity, debt, or hybrid funds, Credsure assists you in identifying the best lending partners. We help streamline the evaluation of your portfolio and manage the necessary documentation to ensure a swift and smooth borrowing experience.

Key Features

• Continuous Compounding: Your mutual funds remain invested in the market, allowing them to grow alongside your financial goals.
• Digital Processing: Many lenders offer quick, paperless processing for loan approvals against mutual funds.
• Overdraft Facility: Often available as an overdraft, meaning you pay interest only on the utilized amount, not the entire limit.
• No Prepayment Penalties: Enjoy the flexibility to repay the loan anytime without incurring foreclosure charges (subject to lender terms).

How to Apply

1. Submit Details: Reach out to us with details of your mutual fund portfolio and requirement.
2. Fund Verification: We help assess the eligibility of your fund schemes with partner lenders.
3. Complete Application: Submit KYC documents and execute the required loan agreements.
4. Lien Marking: A lien is digitally or physically marked on your pledged units with the registrar (CAMS/KFintech).
5. Funds Available: Upon successful lien marking, the loan amount is credited to your account.