A Loan Against Mutual Funds (LAMF) allows investors to pledge their mutual fund units as collateral to borrow cash without redeeming investments. Banks and NBFCs typically lend up to 60–70% of the fund’s value with flexible tenures and lower interest rates than personal loans. The process is digital lien marking happens instantly through depositories such as CAMS or KFintech. LAMF provides quick liquidity while keeping your portfolio intact, making it an efficient short-term funding option for emergencies or business needs.