Can I take a loan against equity mutual funds?

Yes, most lenders, including Liquify, allow loans against equity mutual funds. The loan amount depends on the market value of the pledged units.

What happens if the market value of my mutual funds drops?

If the value of your mutual funds declines significantly, the lender may request additional collateral or partial repayment to maintain the loan-to-value ratio.

Are there tax benefits associated with this loan?

Loans against mutual funds do not offer direct tax benefits. However, since the funds remain intact, you avoid capital gains tax that would apply if you sold your investments.

What is the rate of interest for a loan against mutual funds?

Interest rates for LAMF typically start from 10.5% per annum, varying based on the lender and loan terms.

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Liquify | Thursday, January 16th, 2025, 9:25:06 PM

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