PORTFOLIO-BACKED FINANCING
Loan Against Mutual Funds
A Loan Against Mutual Funds turns your existing portfolio into a ready line of credit. Mark a lien on your units and get an overdraft limit against them without redeeming, without triggering a capital gains event, and without breaking your long term plan. Your units stay invested and continue to move with the market.
Equity mutual funds
Debt and hybrid mutual funds
Lien marked digitally through CAMS / KFintech
Benefit cards
01
Units stay invested
Your holdings are not redeemed. NAV appreciation, compounding and your SIP (Systematic Investment Plan) continue as usual.
02
No redemption, no capital gains event
You borrow against your units instead of selling them, so no exit load or capital gains liability is triggered.
03
Overdraft facility - interest on amount utilised only
Pay interest only on the amount drawn and for the period used. No EMIs or post dated cheques.
04
Digital lien marking
Units are lien marked online through the registrar. No branch visit and no physical forms.
05
24/7 withdrawal and repayment
Draw and repay at your convenience, any day of the week.
06
Zero foreclosure and repayment charges
Part payment or full closure at any time during the tenure, without penalty.
How it works
1
Share your portfolio statement
Send us your consolidated mutual fund statement. We identify the schemes eligible under the lender’s approved list.
2
Mark the lien online
Units are lien marked through CAMS / KFintech and confirmed by OTP. Completely digital.
3
Draw as you need
Your limit is activated against the lien marked units. Withdraw and repay any time while staying invested.
Lending partners
Loans are arranged through our lending partners including Bajaj Finance, Piramal Finance and more.
Not sure how much you can raise against your portfolio? Talk to us and we’ll work it out with you.
Loan approval, limit, tenure and rate of interest are at the sole discretion of the lending partner and are subject to their credit policy and their approved list of eligible securities. AK Investments acts as a distribution partner and does not lend.
Frequently Asked Questions
What is a Loan Against Mutual Funds?
A Loan Against Mutual Funds (LAMF) lets you borrow by pledging your mutual fund units instead of redeeming them. Your units stay invested, so your long-term plan continues, while you access funds for personal or business needs. This helps you avoid exit loads, capital gains tax on redemption and disruption to your financial goals.
How does a Loan Against Mutual Funds work?
You share details of your mutual fund holdings, and the lender marks a lien on the selected units with the registrar (CAMS or KFintech). A borrowing limit is set, usually as an overdraft, and you pay interest only on the amount used. Pledged units cannot be redeemed until the loan is repaid, after which the lien is removed.
Who can apply for a Loan Against Mutual Funds?
Resident Indian individuals aged 18 years and above who hold mutual fund units in their own name can apply. Units may be held in demat or statement of account (SOA) form. Some lenders also extend the facility to HUFs, companies, trusts and NRIs, subject to their policies. KYC documents, PAN and bank account details are required.
Which mutual funds are eligible for a loan?
Equity, debt and hybrid funds from SEBI-registered fund houses are eligible, provided they appear on the lender’s approved list. Typically, equity funds attract a limit of up to 50% of their value and debt funds up to 80%. ELSS units within their three-year lock-in, and units already pledged elsewhere, are generally not accepted.