Need money now? Don't break your investments.
Selling your funds in a hurry can mean selling at a low, paying tax, and restarting your compounding from zero. A loan against mutual funds lets you borrow while your units stay invested and keep growing.
Four steps. Your funds never leave.
Your units are pledged (a "lien" is marked) with the bank or NBFC. They stay in your name and keep earning; you just can't sell them until the loan is repaid.
Check eligibility
We look at which of your funds can be pledged and roughly how much they support.
Pledge online
You approve the lien with an OTP. The lender verifies it with the registrar.
Get the limit
Usually a loan or overdraft limit in your bank account — withdraw only what you need.
Repay & release
Repay anytime; once cleared, the lien is removed and the units are fully free again.
Sell, borrow against funds, or take a personal loan?
| Sell your funds | Loan against mutual funds | Personal loan | |
|---|---|---|---|
| Your investment | Gone — compounding stops | Stays invested and keeps growing | Untouched |
| Tax | Capital gains tax may apply | No tax — nothing is sold | No tax |
| Interest cost | None | Usually lower than a personal loan (secured) | Usually the highest (unsecured) |
| Interest charged on | — | Often only the amount you actually use | Full loan amount from day one |
| Speed & paperwork | Money in 1–3 working days | Mostly online and quick | Credit checks, income proof |
| Repayment | — | Flexible; prepay anytime (check lender terms) | Fixed EMIs; prepayment charges possible |
| Biggest risk | Selling at a market low | Shortfall call if NAV falls sharply | High EMI burden |
What will your EMI be?
Enter the amount, interest rate and months — see your monthly EMI, the total interest and the total you pay back.
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Illustration only.
Ask JS Trivedi about this loanHow much can you borrow?
The RBI updated its rules on loans against securities in February 2026 (effective April 2026). Lenders set their own percentages within RBI's ceilings.
Higher share of value
Debt fund units can support a larger loan — up to 85% of their value under the 2026 RBI directions, depending on the lender.
RBI amendment directions on credit facilities, Feb 2026 (as reported).
Lower share of value
Equity fund units move more, so lenders lend a smaller percentage of their value. The exact share depends on the scheme and the lender.
We confirm the exact limit for your funds before you apply.
Valued conservatively
Pledged units are valued using recent NAVs, and the limit is reviewed regularly — so your available limit can change with markets.
Lender terms; RBI directions, 2026.
Why families choose it
- Medical, education or business needs met without selling
- No capital gains tax triggered
- Long-term SIP journey stays on track
- Interest only on what you withdraw
Risks you must know
- If NAV falls sharply, the lender can ask you to add units or repay part of the loan
- If you can't, the lender may sell pledged units
- Interest keeps running until you repay
- It's still a loan — borrow only for real needs
Loan against MF FAQ
Yes. Your SIP keeps running. Pledged units stay invested and continue to grow or fall with the market; you just can't redeem them until the lien is released.
Because the loan is secured by your units, approval depends mainly on the value of what you pledge. Lenders may still check your credit history, and timely repayment helps your score.
Your pledged value drops. If it falls below what the lender needs, you'll be asked to pledge more units or repay part of the loan within a set time. We help you keep a comfortable buffer so this rarely happens.
Most overdraft-style loans against funds let you repay anytime and charge interest only for the days used. Check the lender's terms for any foreclosure or renewal fees — we go through them with you.
Before you sell — talk to us.
Tell us how much you need and for how long. We'll check if a loan against your funds is cheaper and safer than selling.