Introduction:
Did you know you can get a loan without selling your mutual fund units? A Loan Against Mutual Funds (LAMF) is a fast, easy, and affordable way to access funds in an emergency.
How It Works:
- Pledge your MF units to a bank/NBFC
- Get up to 70–80% of the fund value as a loan
- Continue earning returns on the investment
Why It's a Smart Option:
- Lower interest than personal loans
- No need to liquidate long-term investments
- Quick approval with minimal documentation
Eligibility & Process:
- Available for both equity and debt funds
- Requires demat holding or folio statement
Conclusion:
LAMF is a smart, short-term liquidity solution for those who want funds without disturbing their wealth-building plan.