What is Loan against mutual funds (LAMF)?
A loan against mutual funds (LAMF) can be a good option if you need money quickly without selling your investments or Mutual funds or Shares.
A loan against mutual funds enables investors to pledge their mutual fund units as collateral to borrow money. Lenders assess the value of their pledged units and typically offer a loan amount based on a percentage of their current market value.
Benefits Loan against mutual funds (LAMF)
- Avoid selling investments or Mutual Funds or Shares.
You can avoid selling your investments during unfavorable market conditions - Lower interest rates
LAMF is a secured loan, meaning it's backed by collateral. So that lower interest rates than unsecured loans like credit cards or personal loans. - Flexible repayment options
You can make flexible prepayments, which can help you pay off the loan faster. - Minimal impact on CIBIL score
LAMF can help you achieve short-term financial goals without liquidating Mutual Funds. - Digital & Quick access to funds
You can get funds quickly without disrupting your long-term financial goal
Things to Know before Getting Loan against mutual funds (LAMF)
- Eligibility
- Loan Amount
- Loan Tenure
- Fees
- Loan Repayment
What is the margin for Loan against mutual funds (LAMF)
Customer can borrow up to 50% of the Net Asset Value (NAV) for Equity/ Hybrid/ ETF Mutual Funds and up to 80% for Debt/FMP Mutual Funds.Mutual Funds holding with CAMS as Transfer agent (List of Asset Management Company)
- Aditya Birla Sun Life Mutual Fund
- Bandhan Mutual Fund
- DSP Mutual Fund
- Franklin Templeton Mutual Fund
- HDFC Mutual Fund
- Helios Mutual Fund
- HSBC Mutual Fund
- ICICI Prudential Mutual Fund
- Kotak Mutual Fund
- Mahindra Manulife Mutual Fund
- L&T Mutual Fund
- IIFL Mutual Fund
Mutual Funds holding with KFin Technologies Limited (KFintech) as Transfer agent (List of Asset Management Company)
- Axis Asset Management Company Limited
- Bajaj Finserv Mutual Fund
- Baroda BNP Paribas Mutual Fund
- BOI AXA Mutual Fund
- Canara Robeco Mutual Fund
- Bank of India Mutual Fund
- ITI Mutual Fund
- JM Financial Mutual Fund
- Edelweiss Mutual Fund
- Groww Mutual Fund
- Invesco Mutual Fund
