Loan against Mutual Funds & Securities
Loan Against Mutual Fund
Loan against mutual funds (LAMF) allows you to borrow cash against your mutual fund investments as collateral. You can use institutions providing LAMF to lien mark your mutual funds digitally to avail an instant limit without losing the ownership of your mutual funds and all the associated benefits with it. Funds will be made available in the form of an overdraft facility. You can utilize the required amount and repay anytime without any prepayment charges. Interest is charged only on the utilized amount and for the duration the funds are utilized. You can select from a list of 4500+ approved mutual funds from different asset management companies (AMCs) in India. You can lien mark mutual funds registered with both CAMS & KFintech, Registrars & Transfer Agents (RTAs). We recommend digital loan against mutual funds to meet any of your financial requirements like travel, gadget purchase, balance transfer for your high interest loans, medical emergency.
What are the documents required?
The entire process is 100% digital, so there is no requirement for any physical documents for loan against mutual funds. To ensure a smooth and quick processing, please have the following information handy:
- PAN card number
- Email ID associated with CAMS and KFintech (for mutual fund verification)
- Bank account details for account verification and receiving the loan amount
- Debit card or net banking details for setting up the mandate.
Advantages of Loan against Mutual Funds/ Securities
- Low Interest rates
- Flexible repayment options
- High Loan Amount
- Interest only on utilized amount
- Quick money
- Digital loan against shares
- Loans for First time borrowers
- Source of Short -Term Capital need
- No liquidation of fund required
- Retain Mutual Fund portfolio
- Lien of Mutual Fund
- Liquidity
- Interest rates lower for LAMF
- Overdraft facility
