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Why loan against mutual funds is a better debt option? 

Rising interest rates on loans have prompted many to relook at their debt options.

One of the viable options in such times is loan against mutual funds.

Loan against mutual funds is subject to certain conditions with a minimum and maximum loan amount available.


Banks are selective about mutual fund investments while deciding against or in favour of loan applications. 

Interest rate on a loan against mutual funds is lower than that of a credit card or personal loan.

The benefit of loan against MFs is that it takes care of immediate capital requirements without jeopardising scheme ownership.

Banks grant the right to sell the mutual fund units only if you default. 

Your investments, however, will remain market-linked and earn returns as long as you do not default.

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Why loan against mutual funds is a better debt option?

One may seek a loan against mutual funds irrespective of why they need it. This helps, considering many feel more inclined to dip into their savings or redeem their mutual fund investments at a loss.

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Why loan against mutual funds is a better debt option?

One may seek a loan against mutual funds irrespective of why they need it. This helps, considering many feel more inclined to dip into their savings or redeem their mutual fund investments at a loss.

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