Loan Against Securities

A loan against mutual funds is a financial product offered in India that enables individuals to borrow money against their mutual fund investments. This type of loan is beneficial for those who need immediate funds but do not wish to sell their mutual fund investments. Loan against mutual funds is a quick and hassle-free financing option, as it does not require any collateral or additional documentation. The loan amount is based on the mutual fund’s net asset value (NAV), and the interest rate is typically lower than other unsecured loans. Additionally, loan against mutual funds provides liquidity to the investor while still retaining ownership of their mutual fund units.