FAQ’s
FAQ’s
Frequently Asked Questions
Which types of mutual funds are eligible for loans?
Typically, equity and debt mutual fund units held in demat form are eligible. KSquare helps confirm your fund’s eligibility instantly.
Are mutual funds taxable in India?
Yes, mutual funds are subject to capital gains tax. Taxation depends on the type of fund and holding period.
Can I prepay the loan without penalties?
Most lenders allow prepayment without extra charges. KSquare ensures these terms are clearly shared before you proceed.
Is there a credit score requirement for getting LAMF?
While credit score matters, lenders also consider the value and type of mutual funds pledged. KSquare helps assess your eligibility beforehand.
How are mutual fund returns calculated?
Returns are based on the Net Asset Value (NAV) movement of the fund and any dividends paid out over time.
Is there any penalty for missing a SIP installment?
No penalties are charged by mutual funds for missing SIPs, but your bank may charge ECS failure fees if funds are insufficient.