Instead of redeeming your mutual fund investments during temporary financial requirements, you can avail a Loan Against Mutual Funds (LAMF) facility and continue your long-term wealth creation journey.
With Mirae Asset Financial Services, investors can digitally pledge eligible mutual funds and get quick liquidity with a fully online process.
What is Loan Against Mutual Funds?
Loan Against Mutual Funds allows investors to borrow funds by lien marking their mutual fund units as collateral.
Your investments:
- Continue to remain invested
- Continue participating in market growth
- Avoid redemption-related capital gains tax and exit load
This makes LAMF suitable for:
- Business funding
- Emergency requirements
- Short-term liquidity
- Working capital
- Medical expenses
- Education funding
Key Features of Mirae Asset LAMF
| Feature | Details |
|---|---|
| Interest Rate | Starting from 10.25% p.a. |
| Process | 100% Digital |
| Loan Type | Overdraft Facility |
| Equity MF LTV | Up to 45% |
| Debt MF LTV | Up to 80% |
| Processing Time | Approx. 15 Minutes |
| Maximum Limit | Up to ₹1 Crore (Equity MF) |
| Foreclosure Charges | Nil |
| Minimum Withdrawal | ₹1,000 |
How Loan Eligibility is Calculated
Example 1 – Equity Mutual Funds
Suppose your equity mutual fund portfolio value is:
₹10,00,000
Eligible LTV:
45%
10,00,000×45%=4,50,00010,00,000 \times 45\% = 4,50,00010,00,000×45%=4,50,000
Eligible Loan Limit:
✅ ₹4,50,000
Example 2 – Debt Mutual Funds
Suppose your debt mutual fund portfolio value is:
₹5,00,000
Eligible LTV:
80%
5,00,000×80%=4,00,0005,00,000 \times 80\% = 4,00,0005,00,000×80%=4,00,000
Eligible Loan Limit:
✅ ₹4,00,000
Combined Mirae Asset LAS/LAMF Illustration
| Investment Type | Portfolio Value | Eligible LTV | Eligible Loan |
|---|---|---|---|
| Equity Mutual Funds | ₹8,00,000 | 45% | ₹3,60,000 |
| Debt Mutual Funds | ₹4,00,000 | 80% | ₹3,20,000 |
Total Eligible Loan
3,60,000+3,20,000=6,80,0003,60,000 + 3,20,000 = 6,80,0003,60,000+3,20,000=6,80,000
✅ Estimated Loan Eligibility: ₹6,80,000
Final eligibility depends on approved schemes, market value, lender policy, and risk assessment.
Important Terms & Conditions
- Loan approval is subject to lender discretion.
- Only approved mutual funds are eligible.
- Mutual funds must generally be held with CAMS or KFintech supported RTAs.
- Interest is charged only on the utilized amount.
- Monthly interest servicing is mandatory.
- If market value falls significantly, additional margin/top-up may be required.
- In case of overdue/default, lender may invoke/sell pledged units.
- Loan cannot be used for speculative or capital market activities.
- Processing fees, stamp duty, and applicable taxes may apply.
- Loan tenure options may vary between 12, 24, and 36 months.
- Partial security withdrawal charges may apply.
Community Insights on LAMF
Many investors prefer LAMF during temporary liquidity requirements because it helps avoid breaking long-term investments. Investors also commonly advise maintaining unused buffer limits to manage market volatility and margin calls.
Eligibility
Generally applicable for:
- Resident Indian Individuals
- Age: 18–75 years
- PAN & Aadhaar Required
- Valid Mobile & Email
- Eligible Mutual Fund Holdings
Apply Now for Loan Against Mutual Funds
Instant Digital Application
Disclaimer
This article is for educational and informational purposes only and should not be considered as financial or lending advice. Interest rates, charges, eligibility, LTV ratios, and loan terms are subject to change as per lender policies and applicable regulations. Please read all official loan documents carefully before applying.
