Loan Against Mutual Fund (LAMF) allows investors to raise funds against mutual fund investments.
LAMF facilitates investors to manage urgent requirements of funds and at the same time continue to enjoy ownership of mutual funds.
LAMF is extended in the form of an overdraft facility to enable investors to use the required amount and repay anytime.
In LAMF, interest is charged only on the utilized amount and for the duration the funds are utilized.
In LAMF, the loan limit is based on the type of fund and the value of the fund.
When mutual funds are offered as collateral, the redemption of pledged units will be allowed after the loan is repaid.
LAMF can be utilised by investors to meet short-term expenses for traveling, wedding, home renovation or any emergency expenses without selling mutual funds.
