Loan Against Mutual Funds

A loan against mutual funds allows you to pledge your mutual fund units as collateral with a registered lender and avail funds without selling your investments. You continue to earn returns on your holdings while meeting your immediate financial needs.

• Loan amount typically 50-70% of the NAV value (equity funds) or 80-90% (debt funds).
• Interest rates are usually lower than unsecured personal loans.
• No need to break your investments – your portfolio continues to grow while you access funds.

Loans against mutual funds offer several advantages over other forms of borrowing, making them a preferred choice for informed investors.

• Continue Earning Returns – Your investments stay invested and continue to compound.
• Lower Interest Rates – Secured loans are cheaper than unsecured borrowing options.
• Quick Processing – Minimal paperwork and fast disbursal make it ideal for urgent needs.
• Flexible Tenures – Choose repayment periods that suit your cash flow.

The process of availing a loan against your mutual fund investments involves a few simple steps, managed end-to-end by our team.

• Step 1 – You share your mutual fund portfolio details with us.
• Step 2 – We assess your portfolio value and identify the best lender offering competitive terms.
• Step 3 – You pledge your mutual fund units to the lender through the depository system.
• Step 4 – The lender disburses the loan amount to your bank account.
• Step 5 – You repay the loan with interest, and your units are released from the pledge.

The loan amount depends on the type of mutual fund units you hold and the lender's valuation policy.

• Equity Funds – Typically 50-70% of the NAV (Net Asset Value) of your holdings.
• Debt Funds – Typically 80-90% of the NAV, reflecting their lower risk profile.
• Hybrid Funds – The loan amount depends on the equity-debt mix of the fund.
• Minimum loan amounts typically start from ₹25,000, depending on the lender.

Understanding the costs involved helps you make an informed borrowing decision. We help you find the most competitive terms.

• Interest Rates – Typically 8-14% p.a., depending on the lender, fund type, and loan tenure.
• Processing Fee – Usually 0.5-2% of the loan amount, often negotiable for larger loans.
• No Hidden Charges – We ensure complete transparency on all fees and charges.
• Prepayment Penalty – Many lenders offer flexible prepayment options with zero or minimal penalty.

Applying for a loan against mutual funds through Finzen Capital is simple and hassle-free. Our team handles the entire process.

• Step 1 – Reach out to us with your mutual fund portfolio details.
• Step 2 – We analyse your portfolio and identify the best loan offers from partner lenders.
• Step 3 – We assist with documentation, valuation, and loan application submission.
• Step 4 – Funds are disbursed quickly, and we continue to monitor your portfolio and loan together.