Stay invested
Your units are pledged, not sold. They keep growing with the market, and you avoid the exit load and tax a sale could trigger.
Overview
What is a Loan Against Mutual Funds?
A Loan Against Mutual Funds (LAMF) is a secured credit facility. Instead of selling your mutual fund units when you need money, you pledge them as security and receive a credit limit against their value.
The pledge is a digital lien: the units stay in your name and keep growing with the market, but they cannot be sold until you release them. You use the money, repay it, and get your units back free of the lien.
Your limit depends on the scheme type, the current value of your units and the lender's loan-to-value ratio. Debt and liquid funds usually allow a higher limit than equity funds.
- Avoid the exit load and tax that a sale could trigger
- Pay interest only on the amount you actually use
- Repay any time and reuse the limit
Key Benefits
Liquidity, without disturbing your plan
Get the funds you need while your long-term investments continue to work for you.
Fully digital
Verify with e-KYC, link your funds and approve the pledge with an OTP. No branch visits, no paperwork.
Pay for what you use
Draw only what you need from your limit. Interest applies to the amount used, and repaid amounts can be drawn again.
You choose the units
See your borrowing power scheme by scheme, pick exactly which units to pledge, and release them once you repay.
How It Works
From application to funds in five steps
A simple, guided journey that you can complete entirely from your phone.
- 1
Start online
Enter your mobile number and basic details on Finease. It takes a couple of minutes.
- 2
Verify e-KYC
Confirm your identity with PAN and an OTP. Your details are used only for verification.
- 3
Fetch your funds
Your eligible holdings are retrieved and your available limit is shown scheme by scheme.
- 4
Pledge units
Select the units to pledge and approve the lien with an OTP. They stay in your name.
- 5
Access credit
Once approved, draw funds to your bank account whenever you need, within your limit.
After you draw funds
You pay interest only on the amount used. Make part or full repayments at any time, and the repaid amount becomes available again.
When you are done
Repay the outstanding amount and request a release. The lien is removed and your units are fully free again.
If markets fall
A fall in value can reduce your limit. You may be asked to pledge more units or repay a part of the amount.
Manage Digitally
Everything in one place
Track your limit, draw funds, repay and release pledged units from a single, simple console.
Live limitSee what is available at any time
Instant drawFunds to your bank on demand
Easy repaymentPay dues digitally in a tap
Release unitsRequest depledge after repayment
Activity historyDrawdowns and repayments
StatementsSOA and repayment schedules
AVAILABLE LIMIT₹ 2,45,000Sanctioned ₹3,50,000
DRAWDOWN VS REPAYMENT
| SCHEME | UNITS | VALUE | STATUS |
|---|---|---|---|
| Equity Growth Direct | 1,240 | ₹ 3.85L | Pledged |
| Nifty 50 Index Direct | 860 | ₹ 2.25L | Pledged |
Compare
Pledging vs. selling your units
Neither option is always better. Here is how they differ.
| LOAN AGAINST MF | REDEEMING MF | |
|---|---|---|
| Your units | Pledged, not sold | Sold permanently |
| Growth | Continues, subject to market | Stops on redemption |
| Liquidity | Approved credit limit | Sale proceeds only |
| Cost | Interest and charges apply | Exit load and tax may apply |
| Market risk | Value can still rise or fall | No longer invested |