Aditya Birla Finance Limited
Loans
Home Finance
Personal Finance
Sme Finance
Loan Against Securities
Business
Investments
Mutual Funds
Stock and Securities
Portfolio Management Services
Pension Funds
Real Estate Investments
Life Insurance
Health Insurance
Multiply Wellness
Motor Insurance
Travel Insurance
Pay Bills
Pay anyone
Pay on call
Payment Lounge
Cards
ABC Credit Cards
Download ABCD
![]()
Playstore
Appstore
Scan to Download the App
Playstore
Appstore
1800-270-7000
Loan Against Securities
Aditya Birla Finance Limited
Loan Against Mutual Funds
Financing your Growth can be fueled from your Investments
-
Register yourself -
Provide basic documentation
-
Get loan disbursal in no time
About the Loan
About the Loan Against Mutual Funds
People invest in mutual funds owing to its prowess in offering convenience, asset diversification and long-term gains. However, apart from yielding good economies of scale in terms of lower transaction costs (as compared to buying individual stocks), mutual funds offer another benefit: liquidity in times of financial distress. Taking a Loan Against Mutual Fund units (LAMF) helps you leverage your existing mutual fund investments.
Why Loan Against Mutual Funds (LAMF) ?
Loan Against Mutual Funds offers customers the opportunity of receiving immediate liquidity against the mutual fund units they own. This is essentially an overdraft facility for short-term monetary requirements, with a relatively shorter tenure than other loans. You may take a loan against the mutual funds you own to earn immediate returns on it, as well as earn surplus reserves to invest elsewhere. To avail of a Loan Against Mutual Funds (LAMF), the borrower must request the Mutual Fund Registrar to mark a lien against the mutual fund units.Is Loan Against Mutual Funds (LAMF) for you?
The LAMF is a beneficial monetary tool for those looking to leverage their otherwise idle mutual fund investments, and raise capital quickly for short-term financing needs. You need not sell your mutual fund units, nor is your ownership of the fund units divested after pledging them for a loan. Aditya Birla Finance also enables the borrower to buy additional mutual fund units even when they don't have the entire amount of money required. The borrower may bring in the margin amount and we will provide the balance amount as loan. However, the loan amount is subject to the quality of the mutual funds in your possession.Aditya Birla Finance Loan Against Mutual Funds (LAMF) process
- Collateral: Owned mutual fund units (as per approved list of mutual funds).
- Tenure: Up to 1 year.
- Minimum Loan Amount: Rs 25 lakh.
- Loan Amount Margin: 10% to 50% depending on the securities furnished.
Please ask us for the list of approved mutual fund houses at the time of making your loan application.
So what next ?
- If you want to apply for Loan Against Mutual Funds, download the application form.
- Our Relationship Manager can meet you at your convenience.
Do you have questions?
Call 1800 270 7000 or write us at care.finance@adityabirlacapital.com.Loan Against Mutual Funds FAQ's
A Loan Against Mutual Fund (LAMF) is a secured loan in which borrowers pledge their mutual fund units as collateral to access funds from banks or Non-Banking Financial Institutions.
To apply for a Loan Against Mutual Fund, contact your preferred bank or Non-Banking Financial Institution and apply with relevant documents such as KYC details and mutual fund statements. Upon approval, the lender evaluates the mutual fund units provided as collateral and disburses the loan amount accordingly.
Loan Against Mutual Funds eligibility criteria:
- Indian citizen
- Age between 18 to 90 years
- Salaried or self-employed
- Minimum INR 50,000 security value
To apply for a loan against mf, you must provide KYC documents, such as an Aadhar card, PAN card, address proof, and mutual fund statements. These documents verify your identity and ownership of the mutual fund units pledged as collateral for the loan.
The loan-to-value (LTV) ratio, also known as the Margin on Security, is the percentage of the market value of pledged securities a lender is willing to lend against.
A loan against a mutual fund involves pledging mutual fund units as collateral to a lender in exchange for a loan. The loan amount is typically a percentage of the current market value of the mutual fund units. The borrower pays interest on the loan until it is repaid, at which point the mutual fund units are released back to the borrower.
