Loan Against Mutual Funds Approved List of Schemes for LAMF at smallcase
A Loan Against Mutual Funds or LAMF lets you borrow money by pledging your mutual fund investments without selling them. It’s a way to meet short-term financial needs while staying invested. In this article, we’ll explore the approved list of mutual funds available for a loan against mutual funds via smallcase.
Loan Against Mutual Funds Approved List of Securities
At smallcase, you can avail a loan of 45% of the Loan-to-Value (LTV) against your equity mutual funds and 75% LTV against your debt mutual funds. To illustrate, if your equity mutual fund portfolio has a current value of ₹1L, you can secure a loan of ₹45,000. We offer over 7000+ approved schemes in equity, debt & hybrid categories. You may access the approved list of securities for pledge here.
What is LAMF?
Loan against mutual funds (LAMF) is a facility that allows you to borrow money by using your mutual fund units as security. Instead of selling your investments, you can pledge them to a lender, who will offer you a loan based on the value of those units. You can avail a loan against mutual funds through smallcase at an interest rate of 10.5% – 10.9% p.a. Learn more about the features and benefits of LAMF here.
How to Apply for LAMF?
- Start by logging into the smallcase app with your credentials.
- Go to the ‘More’ section of the app and click on Loan Against Mutual Funds.
- Click the ‘Apply Now’ button to initiate the application process.
- Provide your Date of Birth (DOB) and PAN card details. You’ll then be asked to verify your identity with an OTP.
- After checking your credit limit, decide on the loan amount you wish to apply for.
- Link your bank account to complete the process.
- Choose the mutual fund units you want to pledge. Remember, once pledged, these mutual funds cannot be sold until the loan is repaid.
- Finally, sign the digital agreement to complete the loan application.
Once verified, funds will be credited to your account within two working hours.
To Wrap It Up…
A loan against mutual funds offers a way to access funds without redeeming your investments. It’s essential to check whether your mutual fund holdings are part of the lender’s approved list of securities before applying for this loan. Find out whether your funds are eligible for a loan against mutual funds at smallcase today!
FAQs on Loan Against Mutual Funds Approved List of Securities
No, you cannot take a loan against any mutual fund. Lenders maintain a list of approved mutual funds for pledging. Check out the loan against mutual funds approved list of schemes here.
Your mutual fund investments are eligible for a loan only if they’re part of the lender’s approved list of mutual funds for pledging. At smallcase, you can get a loan against 7000+ approved schemes. Click here to get a list of the approved schemes.
No. Funds like ELSS with a lock-in period of 3 years cannot be used as collateral for a loan. You can check out our list of approved securities for more details.
A pre-approved loan against a mutual fund is a type of loan offered by banks or NBFCs where you’re eligible to borrow money using your mutual fund units as collateral, without needing to liquidate them. In a “pre-approved” setup, the lender has already assessed your eligibility (based on your mutual fund portfolio and possibly other financial parameters) and is ready to offer you a line of credit or a loan amount accordingly.
smallcase offers loan against mutual funds at a competitive interest rate of 10.5% – 10.9% p.a.
All About Loan Against Securities & Loan Against Mutual Funds on smallcase –
smallcase offers quick and easy disbursement of loans against mutual funds ( LAMF). Explore all about the eligibility criteria, documents required, features, and benefits of a Loan against mutual funds on smallcase
