Disbursal in just 4 Hrs
Check eligibility in 15s
A Loan Against Mutual Funds (LAMF) lets you borrow against your existing mutual fund units without redeeming them. Your units stay invested and continue to grow, while you get an instant digital credit line to meet your urgent money needs. As a partner of Volt Money, we help you check your free eligibility and set up your credit line in minutes.
Check eligibility for FREE Compare With Personal Loan
A completely digital process — no paperwork, no branch visits.
We evaluate your mutual fund portfolio and instantly confirm your eligible credit limit.
Mark your mutual fund units as security with a trusted lending partner — digitally.
Complete a fully digital KYC process in minutes — no paperwork required.
Withdraw and repay as per your requirement, anytime, with zero hidden charges.
Key benefits of taking a loan against your mutual fund investments.
Access low-interest rates against your mutual fund portfolio, far cheaper than most unsecured loans.
Draw only what you need, whenever you need it — pay only for what you actually use.
Repay at your convenience with simple monthly interest-only payments, within a 6-year credit line.
A fully digital, mobile-first process with secure integrations at every step.
An illustrative comparison of typical annual interest rates.
A loan against mutual funds usually works out far cheaper than a personal loan. It starts at around 10.49% p.a. compared to 14% to 30% p.a. for personal loans, and you only pay interest on the amount you actually withdraw — not on the entire sanctioned amount. Personal loans are also rarely available for short durations of under 12 months, while a mutual-fund-backed credit line lets you borrow and repay flexibly over a period of up to 6 years.
For example, if you borrow ₹2,00,000 for 3 months at 10.49% p.a. against your mutual funds, the interest works out to roughly ₹5,245. The same amount taken as a personal loan at 18% p.a. would cost around ₹9,000 in interest — plus higher processing charges — and many lenders would not even offer such a short repayment tenure.
| Feature | Loan Against Mutual Funds | Personal Loan |
|---|---|---|
| Interest Rate | From 10.49% p.a. | 14% to 30% p.a. |
| Interest Charged On | Only the amount withdrawn, calculated daily | Full sanctioned amount from day one |
| Collateral | Your mutual fund units (they stay invested) | None (unsecured loan) |
| Credit Score Requirement | No minimum score, no CIBIL check needed | Usually requires a high credit score |
| Processing Fee | From ₹999 (one-time) | Typically 1% to 3% of the loan amount |
| Foreclosure / Prepayment | Zero charges, no penalty | Often 2% to 5% charges |
| Tenure | 6-year credit line, repay anytime | Fixed EMIs, usually 12 to 60 months |
| Disbursal Time | Account ready in under 10 minutes, instant 24/7 withdrawals | Usually takes 1 to 7 days |
It is a facility that lets you borrow money against your existing mutual fund units without redeeming them. A digital lien is placed on your units so they remain invested and continue to grow, while you get an instant credit line ranging from ₹10,000 to ₹5 crore, repayable within 6 years.
You can typically borrow up to 70% of the value of your equity mutual funds and up to 85% of the value of liquid or debt funds. For example, a ₹10 lakh equity portfolio could give you a credit line of around ₹7 lakh.
No physical documents need to be uploaded. The entire process is digital — you only need your PAN, an Aadhaar-linked mobile number, and your bank account details for the repayment mandate.
No. Checking your credit limit is a soft check and does not impact your CIBIL score in any way.
No. You only pay interest on the amount you actually withdraw, calculated daily on your outstanding balance. An unused credit line does not cost you anything.
Yes. Your mutual fund units are digitally lien-marked and remain invested in your name, so they keep earning returns. Only redemption is blocked while the units are pledged, and you can request to unpledge them anytime once the loan is repaid.
Loan against mutual funds is offered through our lending partner, Volt Money, subject to eligibility and lender's terms and conditions. Interest rates, processing fees and loan-to-value ratios mentioned above are indicative and may vary based on your profile, fund type and prevailing lender policies. Please review the terms on the partner platform before proceeding.
