Liquidity Solutions
Unlock Liquidity Without Redeeming Your Investments
Loan Against Mutual Funds (LAMF) allows eligible investors to access funds by pledging their mutual fund units as collateral, without redeeming or disrupting their investments.
Your investments remain pledged while you gain access to a flexible overdraft-style credit facility, subject to lender eligibility and approval.
Rates, limits, approval and timelines are subject to lender eligibility, credit appraisal, portfolio composition and applicable terms.
About LAMF
What is Loan Against Mutual Funds?
Loan Against Mutual Funds is a secured credit facility that allows eligible investors to borrow against mutual fund holdings by pledging units as collateral.
The units remain invested and continue to participate in market movement while a lien is marked against them. The facility typically works like a flexible overdraft, where interest is charged on the amount actually utilised, subject to lender terms.
Keep Investments Intact
Eligible units remain pledged rather than redeemed.
Interest on Usage
Interest applies to the utilised amount under applicable terms.
Flexible Access
Withdraw funds as needed within the approved limit.
Secured Borrowing
The facility is backed by eligible mutual fund holdings.
Smart Borrowing
Why Choose Loan Against Mutual Funds?
Liquidity designed for investors who may need access to funds without immediately exiting long-term investments.
No Redemption Required
Eligible units are pledged instead of redeemed.
Interest on Utilised Amount
Interest is calculated on the outstanding amount utilised.
Quick, Paperless Processing
Digital KYC, lien marking and documentation simplify the process.
Flexible Repayment
Principal repayment follows applicable lender terms.
Loan-to-Value Potential
Eligible value may range from about 50% to 80% depending on scheme and lender norms.
Wide Scheme Coverage
Supported equity, debt, hybrid and liquid schemes may qualify.
Eligible End Uses
Funds may support personal or business requirements under lender terms.
No Foreclosure Penalty
Early repayment may be permitted without charges, subject to terms.
Renewable Facility
Tenure may be renewed under lender policy and eligibility.
Use Cases
Liquidity When You Need It
Access funds for eligible short- or medium-term needs without immediately liquidating your mutual fund portfolio.
Medical Emergencies
Support eligible urgent healthcare expenses.
Education Expenses
Manage eligible academic and related costs.
Business Expansion
Explore liquidity for eligible growth needs.
Travel Requirements
Arrange funds for planned eligible travel.
Short-Term Personal Needs
Bridge suitable temporary funding requirements.
Working Capital
Support eligible day-to-day business requirements.
Indicative Pricing
Interest Rate & Charges
Final pricing depends on the lending partner, portfolio and borrower profile.
| Interest Rate | Starting from 10.00% p.a., subject to lender discretion |
|---|---|
| Processing Fee | Up to 1% of sanctioned limit + applicable taxes |
| Loan Tenure | Up to 12 months, renewable up to 2 times |
| Lien Marking Charges | As applicable by Registrar / AMC |
| Lien Release Charges | As applicable at closure |
| Pre-Payment / Foreclosure | NIL |
| Penal Interest | Additional 2%–3% p.a. on overdue amount, where applicable |
| ECS / NACH Bounce Charges | As applicable |
Interest rates, processing fees, LTV ratios and other charges are indicative and may change at the discretion of the lending partner.
Eligibility
Who Can Apply?
Applicant Profile
- Resident Indian individuals
- Salaried employees
- Self-employed professionals
- Business owners
- Minimum age: 21 years
- Maximum age: up to 70 years at maturity
- Valid account for ECS / NACH mandate
Portfolio Requirements
- Eligible units in Demat or folio form
- Units free from prior lien or encumbrance
- Eligible equity and debt schemes
- Minimum portfolio value as per lender
- Units outside applicable lock-in
- No prior Journey2Wealth relationship required
Paperless Process
Documents Required
Documentation depends on the borrower profile and lender requirements.
Identity Proof
Primary: PAN CardAadhaar, Passport or Voter ID.
Address Proof
Primary: AadhaarUtility bill or rental agreement.
Bank Details
Primary: Cancelled ChequeBank statement or passbook.
Portfolio Proof
Primary: Latest CASDemat statement or folio details.
Income — Salaried
3 Months Salary SlipsForm 16 or employment letter.
Income — Self-Employed
ITR for 2 YearsAudited financials or GST registration.
Application & Consent
Application, NACH / ECS mandate and lien authorisation.
Photographs
Recent passport-size photographs; digital copies where accepted.
Additional documents may be requested based on profile, loan size and underwriting requirements.
How It Works
Simple 5-Step Process
From application to disbursal, designed to be digital and straightforward.
01Submit ApplicationShare basic details and portfolio information.
02Portfolio AssessmentEligible holdings and possible limit are reviewed.
03Online Lien MarkingA lien is marked through the applicable process.
04Sanction & AgreementComplete approval, agreement and mandate.
05Funds DisbursedFunds may be sent after all approvals.
Understand Your Options
LAMF vs Redeeming Mutual Funds
Loan Against Mutual Funds
- Units remain invested but pledged
- Liquidity without immediate redemption
- Interest cost applies
- Lien remains until repayment
- Subject to lender and portfolio eligibility
Redeeming Mutual Funds
- Units are sold
- Investment exposure reduces
- Exit load may apply
- Capital gains tax implications may arise
- No repayment obligation after redemption
Frequently Asked Questions
Clear Answers About LAMF
It is a secured credit facility in which eligible mutual fund units are pledged as collateral instead of being redeemed.
Eligible resident Indian individuals, salaried applicants, professionals and business owners may apply, subject to lender criteria.
The approved amount depends on portfolio value, scheme type, LTV norms and lender assessment.
Interest is generally calculated on the amount actually utilised under the overdraft facility, subject to lender terms.
Eligible units remain invested but carry a lien until applicable repayment and release requirements are completed.
Foreclosure may be available without a penalty under selected lending partner terms.
Supported equity, debt, hybrid and liquid schemes may qualify depending on the lender's approved list.
A partial release may be possible after maintaining the required outstanding balance and LTV, subject to lender approval.
LAMF creates a repayable secured facility while units remain pledged; redemption sells the units and reduces investment exposure.
Eligible cases may be processed within about 48 hours after successful verification, lien marking and approval.
Why Journey2Wealth
Liquidity With Guidance
Journey2Wealth facilitates LAMF through eligible lending partners and helps clients understand the process, documentation and available options.
Portfolio Assessment
Review eligible holdings and possible facility structure.
Partner Coordination
Coordinate with eligible banks and NBFC partners.
Digital Documentation
Support for application, KYC and lien documentation.
Process Guidance
Clear assistance from application through completion.
Explore Liquidity Options
Need Liquidity Without Immediately Redeeming Your Investments?
Speak with Journey2Wealth to understand whether your mutual fund portfolio may be eligible for a Loan Against Mutual Funds facility.
Keep your investment strategy intact while exploring suitable liquidity options.
Journey2Wealth Financial Services Private Limited acts as a financial services facilitator. Loan Against Mutual Funds is offered through registered NBFCs and scheduled commercial banks.
Loan sanction, interest rate, LTV ratio, processing fee, tenure and other terms are subject to lender credit appraisal, portfolio eligibility, lender policies and applicable regulatory guidelines.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully. This content is for informational purposes only and does not constitute financial advice or a loan offer.