Apply for a Loan Against Mutual Funds Online in India
Need quick funds? Get a loan against mutual funds online without selling your investments at competitive interest rates.
Last Updated: 19 June 2025
+91
Verify Captcha
Solve the puzzle
our customers
Loan Against Mutual Funds EMI Calculator
What is Loan Against Mutual Funds?
Loan against mutual funds is basically a way to get money without breaking your mutual fund investments. You just place your mutual fund unit with the bank and get a loan against it. Your investments stay untouched and keep growing. You just can’t sell them until you repay the loan. Now it’s digital. The whole process happens online, so there is no running to the bank. Just apply online and get the loan disbursed quickly. It is one of the easiest ways to get money fast without disturbing your long-term financial plans.
Features of Loan Against Mutual Funds
A loan against mutual funds online allows investors to meet their short-term financial needs without liquidating their investment. This facility is available for both equity and debt funds. Even customers with no credit history can access these loans.
Instant money in your account within minutes
Works for both equity and mutual funds
No need to sell or break your investments
Your mutual funds keep earning returns
Credit history is not required
Interest is applied only on the amount withdrawn
Hundred per cent digital process through the bank's website
It’s available no matter where you are in India
Less stress and more flexibility when you need funds
Eligibility Criteria for Loan Against Mutual Funds Online
The following table depicts the loan against mutual funds eligibility:
- Age: Must be 18 years or above
- Investor Type: Resident individual or HUF
- Ownership: Only approved equity or debt mutual funds
- Mutual Fund Type: Applicant must be a salaried or self-employed professional
- Fund Status: Units must be active and not already pledged
- KYC Compliance: Must be KYC compliant as per SEBI guidelines
- Account Type: Should have an active savings or current account
- Loan Value Limit: Based on the fund value and the lender’s LTV ratio
- PAN Card: A valid PAN card is mandatory
- Lender’s Approved List: The fund should be from an AMC approved by the lender
Documentation Required for a Loan on Mutual Funds
When you are applying for a loan against mutual funds online, the paperwork is pretty light. Here is a list of the commonly required documents when applying for such loans:
- PAN card
- Aadhaar card or any valid address proof
- Latest mutual fund statement
- Bank account details for dispersal
- Passport size photo (in some cases)
- Signed application form (digital or scanned copy)
- Client master list from your demat account
- KYC compliance confirmation
- Income proof (may be asked for large amounts)
- Mobile number linked with Aadhaar (for OTP/verification)
How to Apply for a Loan Against Mutual Funds with My Mudra
At My Mudra, getting a loan against your mutual funds is quick, 100% digital, and completely secure. Here's how it works:
| Step | What Happens | Why It Matters |
|---|---|---|
|
Apply Online |
Fill out a short form on the My Mudra website with your basic details, mutual fund scheme name, and desired loan amount. | Takes less than 2 minutes—no phone calls or branch visits. |
|
Upload Documents Securely |
Upload your PAN, Aadhaar, and latest mutual fund statement in PDF or fetch it directly via CAMS/KFintech. | End-to-end encryption keeps your personal data fully protected. |
|
Get Instant Valuation & LTV |
Our system calculates real-time NAV, values your portfolio, and shows your eligible loan amount using a fixed Loan-to-Value ratio (e.g., ₹10 lakh portfolio × 50% LTV = ₹5 lakh loan). | Transparent process—know exactly how much you can borrow. |
|
Approve Digital Pledge |
Authorize the pledge through NSDL/CDSL via OTP. Your units stay invested and continue earning returns | Zero paperwork and no need to liquidate your investments. |
|
Receive Same-Day Disbursal |
Once pledge is confirmed, we credit the loan amount to your bank—usually within hours. | Ideal for urgent needs like working capital or personal expenses. |
|
Repay Flexibly, Anytime |
Use your My Mudra dashboard to track, withdraw more, or prepay. Interest is charged only on the amount used. | Full control over your loan—available 24×7 at your fingertips. |
Loan Against Mutual Funds EMI Calculator
Now let us talk about another important aspect— calculating the EMI on your loan against mutual funds.
When you take a loan against mutual funds, it is useful to know what your monthly interest will look like. A loan against mutual funds calculator helps you estimate your interest payments based on your loan amount, how long you want to repay it and the loan against mutual funds interest rate.
You can compare offers, set your budget and know in advance what the cost of borrowing will be.
Popular Banks Offering Loan Against Mutual Funds
Below is a list of the 15 popular banks that offer loans against mutual funds:
Bank/Institution |
LAMF Availability |
|---|---|
| State Bank of India (SBI) | Available |
| ICICI Bank | Available |
| HDFC Bank | Available |
| Axis Bank | Available |
| Kotak Mahindra Bank | Available |
| Bank of Baroda | Available |
| Punjab National Bank (PNB) | Available |
| IDFC First Bank | Available |
| IndusInd Bank | Available |
| Canara Bank | Available |
| IDBI Bank | Available |
| Federal Bank | Available |
| Mirae Asset Financial Services | Available |
| Bajaj Finserv | Available |
| Tata Capital | Available |
| IIFL Finance | Available |
| JM Financial | Available |
| 50Fin (via Bajaj Finserv) | Available |
Why Choose My Mudra for Loan Against Mutual Funds?
Looking to get a loan against mutual funds without the stress of paperwork or delays? At My Mudra, we make the entire process of getting a loan against mutual funds online easy, fast, and transparent.
- Quick and Easy Online Process: Apply for a loan on mutual funds in India with just a few clicks. No physical paperwork, no waiting in long queues.
- Same-Day Disbursal: Need urgent funds? With My Mudra, your LAMF (Loan Against Mutual Fund) amount is credited to your bank account—often within hours.
- Zero Liquidation: Your mutual fund units stay invested. You keep earning returns while using them as security for the loan.
- Transparent Loan Against Mutual Funds Interest Rate: Know exactly what you’ll pay. No hidden charges, and you can use our loan against mutual fund calculator to estimate your EMI.
- Trusted Digital Platform: From secure digital pledging to 24×7 dashboard access, managing your loan on mutual funds is smooth and fully online.
- Flexible Repayment Options: Pay only for what you use. Withdraw more or prepay anytime with full control.
.svg)
Still wondering how to get a loan on mutual funds? Try the smart way with My Mudra—loan against mutual funds made simple.
FAQs on Loan Against Mutual Funds
Can we take loan on mutual funds?
Yes, as mentioned in the guide above, you can take a loan against mutual funds. You don’t need to sell your investments and continue to earn returns by using the loan amount for your needs.
Can I repay the mutual fund against the loan amount before the tenure ends?
Yes, you can prepay your loan against the mutual fund amount before the tenure ends. However, certain banks and NBFCs may charge a prepayment penalty. You should always check the loan agreement and inquire about the pre-payment charges.
Are salary slips required for a loan against mutual funds?
Yes, salary slips and tax returns are required as income proof to obtain a loan against mutual funds.