Loan Against Mutual Funds (LAMF)
LAMF is a credit facility in which eligible mutual fund units may be pledged as collateral, subject to the lender's terms.
LAMF can provide liquidity without an immediate redemption, but the collateral and borrowing terms matter.
A Loan Against Mutual Funds uses eligible mutual fund units as collateral for a credit facility. The lender’s LTV rules, eligible schemes, interest rate, margin requirements and market movements can affect the facility.
Check which schemes and folios are eligible and what LTV is available.
Compare interest calculation, processing charges, tenure, repayment and renewal terms.
Understand what happens if collateral value falls and additional margin or repayment is required.
Read before you decide.
Financial products can have different risk, liquidity, tax and regulatory characteristics. Use this page as an educational starting point and review the actual product documents before making decisions.
What should you check for Loan Against Mutual Funds (LAMF)?
Eligible collateral
Check which schemes and folios are eligible and what LTV is available.
LTV & interest
Compare interest calculation, processing charges, tenure, repayment and renewal terms.
Margin risk
Understand what happens if collateral value falls and additional margin or repayment is required.
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