Loans
Loan against investments,without selling them.
Pledge mutual funds or shares and borrow against them, instead of selling.
In one minute
- 1
Keep your investments growing
Pledge mutual funds or shares and borrow against them, instead of selling.
- 2
Pay interest only on what you use
Often given as an overdraft limit — draw and repay as needed.
- 3
Lower cost than personal loans
Typically about 9% to 12% a year.
Chapter 01
What is it?
A loan against securities lets you borrow money by pledging your mutual fund units, shares or bonds. Your investments stay in your name and keep earning returns; the lender simply marks them as pledged until you repay.
It is usually set up as an overdraft: you get a limit, use what you need, and pay interest only on the amount used, for the days you use it.
Chapter 02
How much can you borrow?
01
Equity mutual funds and shares
- Typical loan as share of value
- About 45% – 50%
02
Debt mutual funds
- Typical loan as share of value
- About 75% – 80%
03
Bonds and government securities
- Typical loan as share of value
- About 70% – 90%
If market prices fall sharply, the lender may ask you to add more investments or repay part of the loan.
Chapter 03
Why not just sell?
- Selling may trigger capital-gains tax and exit loads
- Your long-term compounding continues uninterrupted
- Short-term needs can be met and repaid within weeks or months
- Pledging and releasing is now fully online for most funds
Questions
Good toknow.
Do I still get my mutual fund returns?
Yes. Pledged units remain yours and continue to grow (or fall) with the market.
Can I pledge my SIP investments?
Yes, units already allotted can be pledged. ELSS units can be pledged only after their 3-year lock-in.
How fast is it?
With online pledging through the registrars, a limit can often be set up within one to two days.
Loans are provided by partner banks and NBFCs and are subject to their credit assessment, terms and conditions. Interest rates, fees and eligibility vary by lender and borrower profile. We facilitate the process and do not lend directly. Rates shown are indicative ranges; the actual rate depends on the lender and your profile. Tax benefits depend on the law in force and your personal situation. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
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