Question 1

What is a loan against mutual funds?

Accepted Answer

A loan against mutual funds allows you to borrow money by pledging your mutual fund units as collateral, without selling them.

Question 2

How much can I borrow?

Accepted Answer

The loan amount depends on the value of your mutual fund portfolio. Liquify offers a percentage of this value as your credit limit.

Question 3

Can I still earn returns from my mutual funds?

Accepted Answer

Yes! Your mutual funds remain invested and continue to grow, allowing you to benefit from both liquidity and long-term returns. You will also retain the full benefits associated with your mutual funds.

Question 4

What is the interest rate on the loan?

Accepted Answer

Liquify offers competitive interest rates, which is 10.5% per annum, typically lower than personal loans or credit cards.

Question 5

How quickly can I get the funds?

Accepted Answer

Once approved, you can receive the loan amount within 2 hours in your bank account.

Question 6

What documents are required?

Accepted Answer

Just your PAN and your mobile number are sufficient to process a loan request.

Question 7

Can I repay the loan early?

Accepted Answer

Yes, you can repay the loan early without any prepayment penalties.

Question 8

What happens if the value of my mutual fund drops?

Accepted Answer

If the value of your mutual fund units drops significantly, Liquify may request additional collateral or ask you to repay part of the loan to maintain the required loan-to-value (LTV) ratio.

Question 9

Is it safe to pledge my mutual funds?

Accepted Answer

Yes, your mutual funds remain in your name, and Liquify ensures that your assets are secured.

Question 10

What methods are used in determining the credit limit?

Accepted Answer

The credit limit is determined by the Loan-to-Value (LTV) ratio, which is 45% for Equity Mutual Funds and 75% for Debt Mutual Funds. The actual loan amount depends on the amount and category of the pledged mutual funds.

Question 11

Is it going to affect my CIBIL Score when Liquify is checking my eligibility?

Accepted Answer

Liquify does not check your CIBIL score to determine eligibility. Instead, we assess the value of your mutual fund investments to calculate your credit limit, ensuring a quick and hassle-free process.

Liquify's Quick funds against Mutual Funds

Key Features

Instant Liquidity

Competitive Interest Rates

No Asset Sale

Flexible Loan Amount

Pay as You Use

Easy Process

Secure Platform

Best Suited For

Emergency Expenses

Business Needs

Education and Travel

Debt Consolidation

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FAQs

What is a loan against mutual funds?

How much can I borrow against mutual funds?

Can I still earn returns from my mutual funds?

What is the interest rate of loan against mutual funds at Liquify?

How quickly can I get the funds?