Unlock Liquidity Without
Stopping Your Growth
Leverage your portfolio with an instant Digital Loan Against Mutual Funds (LAMF). Secure the cash you need today while your investments continue to compound in the background.
Check Your Limit Instantly ⚡100% Digital Process • Limits from ₹25,000 to ₹10 Crores • Delhi NCR & PAN India
Why Liquidate When You Can Leverage?
Liquidating your portfolio for emergency funds destroys your compounding curve and triggers capital gains tax. Pledging your units keeps your wealth architecture entirely intact.
Compounding Continues
Your pledged mutual fund units stay in your name and remain fully invested in the market, allowing you to capture ongoing capital appreciation and dividend payouts.
Pay Only for What You Use
This operates as an overdraft facility. Interest is strictly calculated on the exact amount you withdraw, and only for the specific number of days you utilize the funds.
Zero Prepayment Fees
Close your loan entirely or make partial repayments whenever you have surplus cash. We charge absolutely zero foreclosure penalties, giving you complete financial flexibility.
The Comprehensive Guide to
Loans Against Securities
What exactly is a Loan Against Mutual Funds (LAMF)?
A Loan Against Mutual Funds is a specialized digital overdraft facility. Instead of breaking your SIPs or redeeming your mutual fund units to meet short-term financial emergencies, you temporarily “pledge” them as collateral. The lender grants you a credit limit based on the value of your portfolio. You can withdraw cash from this limit directly into your bank account instantly.
How does the digital process work?
The days of visiting a bank branch with physical share certificates are over. Through our integrated digital portal, the process takes less than 15 minutes:
- Fetch: Enter your mobile number. The system securely fetches your consolidated mutual fund portfolio directly from the RTAs (CAMS and KFintech).
- Calculate: The algorithmic engine instantly calculates your eligible maximum credit limit based on the types of equity and debt funds you own.
- Pledge & Sign: You select the specific funds you wish to pledge. You will digitally authorize the lien via a secure Aadhaar-based OTP.
- Disburse: Once the digital agreement is signed, the requested funds are deposited directly into your verified bank account.
What happens to my pledged securities? Do I lose them?
Absolutely not. You retain full ownership of your mutual fund units. The pledge simply places a temporary “lien” on the units in the registry, meaning you cannot sell or redeem those specific units while the loan is active. However, your units will continue to experience market growth, and any dividends declared by the AMC will still be credited directly to your primary bank account.
How much loan limit can I get?
The lending limit depends on the risk profile of your underlying assets, as governed by SEBI and RBI regulations:
- Equity Mutual Funds: You can generally get an overdraft limit of up to 45% to 50% of the current Net Asset Value (NAV).
- Debt Mutual Funds: Because they are less volatile, you can typically secure up to 80% to 85% of their current value.
How is the interest calculated and repaid?
Unlike a traditional EMI-based Personal Loan where interest is charged on the entire disbursed amount from day one, LAMF operates on a highly efficient Simple Interest daily calculation. If you are approved for a ₹10 Lakh limit, but you only transfer ₹2 Lakhs to your bank account for 15 days, you will only be charged interest on ₹2 Lakhs for those 15 days. The monthly interest is auto-debited directly from your linked bank account.
What happens if the market crashes?
Because the value of equity mutual funds fluctuates, the value of your collateral may drop. If a severe market correction causes the value of your pledged units to fall below the required margin maintenance limit, you will receive a “margin call.” You can resolve this simply by pledging a few additional mutual fund units or making a partial cash repayment to restore the required balance.