How is Loan Against Mutual Fund different from other loans?

Unlike unsecured loans, Loan Against Mutual Fund (LAMF) is a secured loan where mutual funds serve as collateral. This generally results in lower interest rates and better terms.

How much loan can I take against my mutual fund investments?

The loan amount is typically 50% to 75% of the market value of your mutual fund investments, depending on the type of mutual funds and the lender's policies.

Can this loan be used as a credit line?

While LAMF can be used to access funds quickly, it typically does not function as an open-ended credit line. Repayment terms and limits are predefined.

How long will the application process and disbursement take?

Liquify offers a fast application process, with loans being approved and disbursed within a few days, often as quickly as 24-48 hours.

What is the process of taking LAMF?

The process involves applying online, providing minimal documentation, and using your mutual fund units as collateral. Liquify offers a smooth and digital process for quick approvals and disbursement.

Home > Blogs > How is the credit limit determined for Loan Against Mutual Fund?

Liquify | Thursday, January 16th, 2025, 9:46:49 PM

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