By Radhika Need quick cash but don’t want to sell your investments? A loan against mutual funds (LAMF) is one of the smartest ways to access liquidity without disturbing your long-term wealth creation.
The good news: several fintech platforms in India now offer instant loans against mutual funds with minimal paperwork and quick disbursal.
Here’s a curated list of the best platforms to get an instant loan against mutual funds.
Things to Consider Before Taking a Loan Against Mutual Funds
Before you apply, keep these points in mind:
Loan-to-Value (LTV)
- Equity funds: ~50%
- Debt funds: up to ~80%
Interest Rates
- Typically range between 9% and 14% per annum
Market Risk
If your mutual fund value falls, you may face a margin call
Processing Time
Most platforms now offer same-day or instant disbursal
Best Platforms to Get Instant Loan Against Mutual Funds
Groww
Groww stands out as one of the best platforms to get an instant loan against mutual funds, thanks to its fully digital, fast, and investor-first approach. Through Groww Credit, users can easily pledge their mutual fund holdings and unlock liquidity without selling their investments. This means your portfolio continues to stay invested and generate returns, helping you maintain long-term wealth creation while meeting short-term financial needs.
On the Groww Credit app, you can easily check your credit limit and access high loan limits (up to ₹15 crore depending on holdings), making it suitable for both small and large financial needs.
Compared to traditional loans, Groww offers lower interest rates, zero hidden charges, and a completely transparent experience, making it a smarter borrowing option.
Paytm Money
Paytm Money provides a convenient and fast way to get a loan against mutual funds by leveraging its partnerships with regulated NBFCs. Users can easily check their loan eligibility within the app and proceed with a fully digital application process.
The platform facilitates smooth lien marking through registrars like CAMS and KFintech, ensuring a secure transaction. One of its key advantages is the speed of approval, which allows users to access funds quickly during urgent financial needs. The platform is designed to minimize friction and paperwork, enhancing user experience.
ICICI Bank
ICICI Bank is a well-established and trusted provider of loans against mutual funds, offering a secure and structured borrowing experience. Customers can avail themselves of an overdraft facility against their mutual fund holdings, which provides flexibility in withdrawing funds as needed. Interest is charged only on the amount utilized, making it a cost-efficient solution.
The bank supports a wide range of mutual fund schemes, ensuring broader eligibility for borrowers. ICICI Bank also provides a robust digital platform, allowing users to apply and manage their loan online.
HDFC Bank
HDFC Bank offers a dependable option for availing loans against mutual funds, especially for its existing customers. The bank provides an overdraft facility, enabling borrowers to withdraw funds as required and pay interest only on the used amount.
The process of pledging mutual funds is straightforward, with lien marking ensuring that investments remain secure. HDFC Bank is known for its competitive interest rates and strong customer service network. The application process is increasingly digital, reducing the need for extensive paperwork.
Volt Money
Volt Money is a fintech platform specifically designed to offer instant loans against mutual funds and other securities. It stands out for its fully digital process, where users can get approved for a credit line within minutes. The platform allows borrowers to withdraw funds as needed and pay interest only on the utilized amount, making it highly flexible.
Volt Money integrates directly with mutual fund registrars, ensuring a smooth lien marking process. The user experience is streamlined, with minimal documentation and quick disbursal timelines. The platform also provides clear visibility into loan limits, interest rates, and usage.
Smallcase
Smallcase offers loans against mutual funds as part of its broader investment ecosystem, making it a convenient option for its users. The platform supports a wide range of mutual fund schemes, allowing investors to leverage their holdings without redeeming them.
The loan application process is fully digital and designed for quick turnaround times. Users can pledge their mutual funds easily and receive funds within a short period. The loan facility is structured to ensure flexibility, often offering overdraft-style access to funds. Transparency in charges and terms enhances user trust.
Conclusion
A loan against mutual funds is a smart liquidity tool, especially when you want to avoid breaking your investments during market volatility. The best pick depending on all the factors would be Groww, especially for existing Groww users, as their investments are already integrated, making the journey frictionless.
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