By Hemant Sharma Using your mutual fund investments as collateral to unlock quick cash without selling your assets is becoming a popular financing option. Loan Against Mutual Funds (LAMF) lets investors tap liquidity while keeping their long-term investment goals intact.
Below are top platforms and financial providers where you can avail LAMF in India, along with key features to help you choose the right option.
Platforms Offering Loan Against Mutual Funds (LAMF)
Groww Credit
Groww has expanded beyond just mutual fund investing and trading. Through Groww Credit, the platform now offers Loan Against Mutual Funds, where users can pledge their mutual fund holdings to secure a line of credit (up to ₹15 Cr depending on holdings) without selling them.
To avail LAMF on Groww Credit, all you need to do is check your credit (loan) limit, and the disbursement will happen within minutes. The best part is that the interest is only charged on the withdrawal amount, with interest rates starting at just 10.49% p.a.
Also, your pledged mutual funds stay invested and continue earning returns even after you take the loan.
Bajaj Finserv
Bajaj Finserv offers loan against mutual funds through a structured and reliable NBFC model. The platform supports a wide range of mutual fund schemes across multiple asset management companies, making it suitable for investors with diversified portfolios.
Bajaj Finserv provides a pre-approved credit limit, allowing borrowers to access funds quickly once the mutual funds are pledged.
HDFC Bank
HDFC Bank provides a digital loan against mutual funds for customers who prefer traditional banking security combined with online convenience. The bank allows borrowers to pledge eligible mutual fund units and receive funds without selling their investments.
HDFC Bank’s LAMF product offers flexible tenures, competitive interest rates, and the assurance of dealing with a regulated banking institution.
Volt Money
Volt Money is one of the most popular digital-first platforms offering loans against mutual funds. It enables users to unlock a credit line almost instantly by pledging eligible mutual fund units.
The entire process is paperless, with limit approval often taking just a few seconds. Borrowers can withdraw funds as needed and are charged interest only on the amount utilised rather than the entire sanctioned limit.
Mirae Asset Financial Services
Mirae Asset Financial Services offers loan against mutual funds with a strong focus on speed and digital execution. Known for its investment expertise, Mirae Asset allows customers to generate loan limits online and receive funds quickly after pledge confirmation.
The platform supports a broad list of mutual fund schemes and offers competitive interest rates compared to many traditional lenders.
FundsIndia
FundsIndia, primarily known as an investment platform, offers loan against mutual funds through partnered lending institutions. This allows existing FundsIndia users to unlock liquidity from their portfolios without shifting platforms.
The process is digital and integrated with the user’s investment dashboard, making it easy to track pledged funds and loan usage.
Conclusion
In conclusion, a loan against mutual funds is a flexible and efficient way to meet short-term or medium-term financial needs without disturbing long-term investment goals. Whether you choose a fintech platform for speed, an NBFC for flexibility, or a bank for stability, the right choice depends on your portfolio size, liquidity requirements, and comfort with digital lending. Comparing interest rates, loan-to-value ratios, and ease of access can help you select the platform that best aligns with your financial strategy.