Which loan has a lower interest rate?

A loan against mutual funds generally offers lower interest rates, typically between 9% and 13% per annum, while personal loan interest rates usually range from 10.5% to 24% per annum because personal loans are unsecured.

Does a loan against mutual funds affect your credit score?

A loan against mutual funds has a relatively limited impact on your credit score. Many lenders perform a soft credit inquiry during eligibility checks, and timely repayment of the secured loan can contribute positively to your credit history.

Which is easier to obtain: a personal loan or a loan against mutual funds?

If you own eligible mutual fund investments, a loan against mutual funds is generally easier because approval depends primarily on the value of your portfolio. Personal loans typically require income verification, employer checks, and a strong credit score.

Which is better during emergencies?

A loan against mutual funds is often better for emergencies because many digital lenders can complete the process within 24 hours, whereas personal loan approval may take one to seven working days.

Can I have both a personal loan and a loan against mutual funds at the same time?

Yes. A personal loan and a loan against mutual funds are separate credit facilities. Having one generally does not prevent you from applying for or using the other, subject to the lender's eligibility criteria.

Loan Against Mutual Funds vs Personal Loan: Which is Better?

Home > Blogs > Loan Against Mutual Funds vs Personal Loan: Which is Better?

Liquify | Wednesday, July 8th, 2026, 5:44:45 PM

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