What happens if the value of my mutual funds drops after taking a loan against them?

If the value drops significantly, the lender may require you to pledge additional funds or repay a portion of the loan to maintain the collateral value.

Can I take multiple loans against different mutual funds?

Yes, you can take loans against multiple mutual funds, subject to lender policies and collateral requirements.

Is there a limit to how much I can borrow against my mutual funds?

The loan amount depends on the current value and type of your mutual fund holdings, typically up to 50–80% of the portfolio value.

What happens if I default on my loan against mutual funds?

In case of default, the lender may liquidate your pledged mutual fund units to recover the outstanding loan amount.

Home > Blogs > Loan against mutual funds or Liquidate: Making the Right Choice with Mutual Funds

Liquify | Friday, January 3rd, 2025, 10:12:08 AM

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