Can SIP units be pledged for a loan?

Yes. Mutual fund units purchased through a Systematic Investment Plan (SIP) are treated the same as lump sum investments. Once the units are credited to your folio, they can generally be pledged for a loan, subject to the lender's eligibility criteria.

Is SIP better than lump sum for a loan against mutual funds?

Neither investment method is inherently better. Loan eligibility depends on the current value of your mutual fund portfolio, the eligible schemes, and the lender's Loan-to-Value (LTV) policy rather than whether the units were purchased through SIP or as a lump sum.

Which SIP investments qualify for pledging?

Most open-ended equity, debt, liquid, hybrid, flexi-cap, large-cap, index and balanced advantage fund SIPs are generally eligible. ELSS SIP units remain ineligible until each installment completes its individual lock-in period, and some sectoral or thematic funds may not qualify depending on the lender.

Do new SIP installments get automatically pledged?

No. SIP installments purchased after the original pledge remain unpledged in your mutual fund folio. You may choose to pledge those units later if you want to increase your available loan limit.

What is the minimum SIP portfolio required for a loan against mutual funds?

Most lenders require a minimum eligible mutual fund portfolio value of around ₹50,000 before you can apply for a loan against mutual funds, although individual lender requirements may differ.

Can I pledge SIP units from multiple mutual funds?

Yes. You can generally pledge eligible SIP investments across multiple mutual funds and asset management companies, provided the schemes are supported by the lender and registered through the applicable registrar.

Can You Get a Loan Against SIP Investments?

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Liquify | Wednesday, July 15th, 2026, 3:53:17 PM

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