What is the LTV ratio in a loan against mutual funds?

Loan-to-Value (LTV) is the percentage of your mutual fund portfolio's value that a lender offers as a loan. While RBI permits up to 75% LTV for eligible equity mutual fund units, most lenders apply internal limits of around 45% to 50% based on their risk policies.

Do all mutual funds qualify for pledging?

No. Open-ended equity, debt, liquid, hybrid and index funds are generally eligible. ELSS funds under lock-in, close-ended funds, and some sectoral or thematic funds may not qualify. Each lender maintains its own approved list of schemes.

Is there a minimum investment amount required for a loan against mutual funds?

Most lenders require a minimum mutual fund portfolio value of approximately ₹50,000, although the exact requirement may vary depending on the lender and the types of funds pledged.

Can SIP investors apply for a loan against mutual funds?

Yes. Mutual fund units purchased through SIPs become eligible for pledging once they are credited to your folio. ELSS SIP investments remain ineligible until each installment completes its individual lock-in period.

What happens if markets fall during my loan tenure?

Since the loan amount is linked to the Net Asset Value (NAV) of your pledged mutual funds, a market decline may reduce your available credit limit. If your Loan-to-Value ratio exceeds the lender's permitted threshold, you may receive a margin call requiring additional collateral or partial repayment.

Is there a maximum loan amount against mutual funds?

Yes. Subject to applicable RBI guidelines, the maximum loan available depends on your portfolio value, eligible fund types, the lender's Loan-to-Value policy, and the overall regulatory borrowing limits.

Loan Amount Against Mutual Funds: How Much Can You Get?

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Liquify | Thursday, July 9th, 2026, 3:53:30 PM

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