PaisaOne
Loading your financial journey...
PaisaOne
Most Popular

Loan Against Mutual Funds Up to ₹3 Crores

Get instant loans against your mutual fund investments with lowest interest rates starting from 10.5%. Quick approval in minutes, minimal documentation, and flexible repayment options. Compare rates from 50+ banks and NBFCs.

Instant Approval
Minimal Documentation
Wide Fund Selection

What is Loan Against Mutual Funds?

Loan Against Mutual Funds (LAMF) lets you borrow money by using your mutual fund units as collateral. With PaisaOne, you can digitally lien mark your mutual funds and access immediate financial support.

Overdraft Facility

Works like an overdraft - take out money when needed and pay back when convenient. Pay interest only on the amount used and for the duration used.

Wide Fund Selection

Choose from approved mutual funds from leading AMCs across India. Lien mark funds with CAMS or KFintech for instant access.

Flexible Usage

Manage short or medium-term financial needs while keeping your long-term investment goals intact.

Quick Facts

Interest Rate10.5% p.a.
Max Equity Loan₹1 Crore
Max Debt Loan₹3 Crore
Processing Fee₹999 + taxes
Foreclosure ChargesZERO

Features & Benefits of Loan Against Mutual Funds

Experience the convenience of instant liquidity with our comprehensive LAMF solution

Get LAMF Limit Online Within Minutes

Complete 6 simple steps to get an overdraft limit against mutual funds within minutes using our mobile app. Your application will be processed instantly.

Zero Foreclosure Charges

No lock-in & no foreclosure charges if you decide to repay your outstanding early. You can make payment anytime with zero charges.

Instant Disbursal

Get access to funds whenever you need them. Required amount credited directly to your bank account on the same day.

Large List of Approved Securities

Select from approved mutual funds from different AMCs. Lien mark funds registered with both CAMS & KFintech RTAs.

100% Digital Process

No need to visit branches. Complete your entire journey online from your mobile device without submitting physical documents.

Retain Ownership

Allow your mutual funds to achieve long-term goals. Continue to retain ownership and reap all associated benefits.

Attractive Interest Rate

Avail loan at attractive interest rate starting 10.5% p.a. on utilized amount with flexi payment option.

Flexible Loan Tenure

The overdraft limit has a tenure of 12 months and is renewed thereafter for continued access.

Higher Loan Value

Get higher limit up to ₹1Cr for equity mutual funds (45% LTV) and up to ₹3Cr for debt mutual funds (80% LTV).

How to Avail Loan Against Mutual Funds?

Easily avail digital loan on mutual funds in 6 simple steps. Have your PAN, Aadhaar, and bank details ready.

1

Download App or Apply via Web

Start your application through our mobile app or web platform

2

Select Mutual Fund Type

Choose between equity or debt mutual funds for your loan

3

Complete KYC Registration

One-time KYC using PAN and Aadhaar details from Digilocker

4

Lien Mark at RTA Portal

Lien mark through CAMS/KFintech portal via OTP authentication

5

Verify Bank Account

Online bank account verification via e-mandate process

6

Sign Loan Agreement

Read and digitally sign the loan agreement online

Your Overdraft Facility is Ready!

Start accessing funds immediately after completion

Loan Details & Charges

Transparent pricing with no hidden charges

Loan Amount
Equity Mutual FundsUp to ₹1,00,00,000 (45% LTV)
Debt Mutual FundsUp to ₹3,00,00,000 (80% LTV)
Minimum Amount₹10,000
Interest & Tenure
Interest Rate10.5% p.a. (on utilized amount)
Loan Tenure12 Months (renewable)
APR10.5% to 27.3% per annum
Fees & Charges
Processing Fee₹999 + taxes
Foreclosure ChargesZERO
Stamp Duty₹500
Bounce Charges₹500 + taxes
Example Calculation

Loan Details

Loan Amount₹50,000
Tenure12 months
Interest Rate10.5% p.a.
Monthly Interest₹438

Total Cost Breakdown

Interest Amount₹5,250
Processing Fee₹999
Stamp Duty₹500
Total Cost₹6,749*

* Taxes as applicable

Eligibility & Documentation

End-to-end digital process with no physical document submission required

Eligibility Criteria
  • Resident Indian individual
  • Valid PAN & Aadhaar Card
  • Hold approved mutual funds with CAMS & KFintech
  • Age between 18 to 75 years
  • Valid email ID and mobile number
  • Valid bank account with cheque copy
Digital Documentation

KYC Documents

PAN and Aadhaar verification through Digilocker

Bank Verification

Online bank account verification via e-mandate

Mutual Fund Lien

Digital lien marking through CAMS/KFintech RTAs

Frequently Asked Questions

Get answers to common questions about loans against mutual funds

What is a Loan Against Mutual Funds (LAMF)?

LAMF lets you borrow money by using your mutual fund units as collateral. It works like an overdraft where you can take money when needed and pay interest only on the utilized amount.

What happens if the value of my mutual funds drops?

If your mutual fund value falls below the required margin, you may receive a margin call requiring additional collateral or partial repayment to maintain the loan-to-value ratio.

How is the interest calculated and charged?

Interest is calculated daily on the utilized amount at 10.5% p.a. and charged monthly. Interest will be debited on the 3rd working day of every month via NACH mandate.

Can I pledge mutual funds held in a Demat account?

Currently, only mutual funds registered with CAMS and KFintech (RTAs) can be lien-marked. Demat account holdings may have different procedures.

How long does fund disbursal take?

Once your overdraft facility is set up, funds are disbursed instantly to your registered bank account on the same day of withdrawal request.

Can I partially depledge my mutual funds?

Yes, you can partially depledge mutual funds and also swap one mutual fund with another, subject to maintaining the required loan-to-value ratio.

What happens if I miss a monthly interest payment?

Missing interest payments will result in penal charges of 15% p.a. on the overdue amount. Continued default may lead to invocation of pledged securities.

What happens at the end of the 12-month tenure?

The overdraft facility can be renewed for another 12 months. You'll need to pay renewal charges of ₹999 plus applicable taxes for continuation.

Ready to Get Your Loan Against Mutual Funds?

Access instant liquidity in just 15 minutes while keeping your investments growing

100% Digital Process • No Physical Documentation Required