What is Loan Against Mutual Funds & How Does It Work?

Loan Against Mutual Funds (LAMF) is a financing option that allows investors to borrow money by pledging their mutual fund holdings as collateral. Instead of selling your investments, you can access funds quickly while keeping your portfolio intact. The loan amount depends on the mutual fund type and its market value, with interest rates generally lower than personal loans. This option is ideal for short-term liquidity needs without disrupting long-term wealth creation. Learn how Loan Against Mutual Funds works, its benefits, eligibility criteria, and the process to apply.