A Loan Against Mutual Funds (LAMF) allows you to access funds by pledging your mutual fund investments as collateral. You don’t need to sell them. With IndiaLends, you can easily lien mark your mutual funds digitally to get an instant credit limit. You continue to own your mutual funds and can benefit from any growth, dividends, or interest. The loan is provided as an overdraft facility, meaning you only pay interest on the amount you use. You can repay at any time without prepayment penalties.

You can apply for a loan between ₹25,000 and ₹2 crore. Loan amounts exceeding ₹2 crore may be approved on a case-by-case basis, subject to approval.

The entire process is 100% digital. There’s no need for any physical documents for a loan against mutual funds. You can get a loan using just your PAN details, Email id, Bank account details, and Debit card or net banking.

The credit limit is determined by applying a percentage to the current market value of the mutual funds you intend to pledge. For equity mutual funds, this percentage is 45%, while for debt mutual funds, it is 80%.

Loan against mutual funds is available for over 4500 mutual funds offered by various asset management companies (AMCs) in India through our partner Volt Money. However, please note that tax-saving fund units are not eligible if they were purchased less than 3 years ago and have not matured yet.