Top Loan Against Mutual Fund Service Consultants in Chennai
Mutual funds are built for long-term wealth creation. But there are times when you may need quick cash for personal or business needs. Selling your mutual fund units might seem like the only option, but it can interrupt your investment goals, cause tax implications, or even make you miss future gains. A loan against mutual funds helps you avoid that. Instead of redeeming your units, you pledge them to the lender and get a loan based on their current market value or NAV. You stay invested, and your portfolio continues to grow in the market. This option is ideal for investors who want liquidity without compromising their financial future.
At Finmarra, we make this smart borrowing choice even simpler. You can now raise funds against your equity or debt mutual funds through a seamless digital process. We guide you in choosing the best lenders based on your fund type, scheme performance, and NAV. Our experienced team handles all formalities and ensures fast approvals with flexible repayment options. Since your units remain in your name, you retain ownership while covering your temporary cash needs. Whether you're managing company costs, crises, or short-term goals, we help you manage your investments properly and without breaking them. With Finmarra, you stay invested while staying financially ready.
Eligibility Criteria & Limits For Loan Against Mutual Fund
Equity Mutual Funds
You can borrow up to 50% of the NAV of your pledged equity funds. Since equity funds carry market risk, lenders allow slightly lower margins to stay on the safer side.
Debt Mutual Funds
Lenders consider debt funds more stable, so they allow higher loan-to-value ratios. You can get 70% to 80% of the NAV of your debt fund portfolio, depending on the scheme type.
Minimum Portfolio Size
To apply for this loan, most lenders require a minimum fund value of Rs. 1 Lakh. This threshold ensures there's enough security to process and disburse the loan.
Things to Know About Loan Against Mutual Funds in India
Digital Process
Everything from pledging your mutual fund units to disbursal is done online. If your funds are held in a Demat account, the process is smooth and fast. In most cases, lenders complete approvals and credit the loan amount within 24 to 48 working hours.
No Need to Sell Investments
When you pledge your units, you still retain ownership of them. You don’t sell or exit the market. This way, your investments continue to grow if market conditions improve, while you meet your current cash needs without disruption.
Low Interest Rates
This loan is secured by your fund units, so lenders treat it as a low-risk loan. That’s why the interest rate is much lower compared to personal loans or credit cards. It's a cost-effective way to raise funds without giving up returns.
Flexible Tenure
Lenders offer a range of repayment options based on your comfort. You can choose EMIs, bullet repayments, or even interest-only plans. This flexibility helps you repay based on your future inflows without straining your current finances.
Loan Against Mutual Funds Online India For Instant Approval
Apply for a loan against mutual funds online in India. Get instant approval, low interest rates, and an easy process on equity or debt mutual fund units from top banks like HDFC or ICICI.
Why Choose Finmarra For a Loan Against Mutual Funds, Chennai?
Direct Integration with Asset Management Companies
We work directly with leading AMCs to help you pledge units easily and get loans without unnecessary delays or confusion.
Fast Disbursal with Expert Support
Our team assists you at every step, ensuring your loan is processed within 24 to 48 hours without any roadblocks.
Low-Interest Options Based on Your Portfolio Strength
We match your fund profile with suitable lenders offering the best possible interest rates to reduce your borrowing costs smartly.
Secure Process with End-to-End Transparency
From application to disbursement, every step is secure, digital, and fully transparent, so you stay informed and in control always.
Who Can Apply for a Loan Against Mutual Funds in India?
Salaried Professionals with Mutual Fund Holdings
If you're employed and hold mutual fund units, this loan gives you access to fast funds without disrupting your career-linked investments or financial plans.
Business Owners Needing Quick Capital
Entrepreneurs who hold mutual funds personally or under their firm can access loans quickly without breaking long-term investments or disrupting business continuity.
Investors Who Want to Avoid the Tax Impacts of Selling
Selling mutual funds can trigger capital gains tax. This loan helps you get liquidity without any tax liability, since there is no actual redemption involved.
Documents Required for Loan Against Mutual Funds India
Mutual Fund Statement or Demat Account Report
This shows the exact number of units, scheme names, and fund value. Lenders use it to confirm ownership and calculate the loan value.
Mutual Fund Statement or Demat Account Report
This shows the exact number of units, scheme names, and fund value. Lenders use it to confirm ownership and calculate the loan value.
PAN, Aadhaar, and Recent Photo
These are used for identity verification as per KYC norms. The process is simple if your mutual funds are already KYC compliant.
PAN, Aadhaar, and Recent Photo
These are used for identity verification as per KYC norms. The process is simple if your mutual funds are already KYC compliant.
Bank Account Details for Disbursement
Lenders transfer the loan amount directly to your bank account. You must provide account details and a cancelled check or proof of ownership.
Bank Account Details for Disbursement
Lenders transfer the loan amount directly to your bank account. You must provide account details and a cancelled check or proof of ownership.
How Loan Against Mutual Funds Works in India 2025 Guide
Select Eligible Mutual Funds
01Choose mutual fund units from your portfolio that are accepted by lenders. Most equity and debt funds are eligible.
Submit the Pledge Request Online
02Log in to your Demat account or mutual fund platform and initiate a pledge request. This authorizes the lender to hold the pledged units.
Lender Reviews Your Portfolio
03The lender checks the fund type, NAV, and stability before confirming the loan amount. Typically, 50% to 80% of the NAV is sanctioned.
Loan Approval and Disbursement
04Once the lender verifies the documents and fund pledge, the loan is disbursed directly to your bank account, usually within 24 to 48 hours.
Continue Earning on Your Investment
05The mutual funds stay in your account, and you continue to earn returns while repaying the loan based on agreed terms.
Loan Against Mutual Funds FAQ Process, Eligibility & Benefits
