A loan against mutual funds is a financial product that allows investors to borrow money from banks or non-banking financial companies (NBFCs) using their mutual fund holdings as collateral. This option provides liquidity to investors without the need to sell their mutual fund units, thereby allowing them to remain invested for long-term growth.
One of the main advantages of a loan against mutual funds is liquidity. It provides immediate access to cash without disrupting long-term investment plans. The flexibility of this financial product means that it can be used for various purposes, such as funding emergencies, education, or catering to urgent financial needs, while still benefiting from the potential market appreciation of mutual fund investments.
Overall, a loan against mutual funds is an attractive option for investors seeking quick access to funds while maintaining their investment strategy.
Term Loan
A term loan allows you to borrow money by pledging your mutual fund units as collateral, with flexible repayment terms.
Over Draft / Flexi Loan
Pay interest only on the money utilised with the flexibility to pay the principal amount anytime in one go or in parts.
Consumer Loan
A point-of-sales financing solution for individuals to purchase goods or services, typically with fixed interest rates and repayment terms.