How to Close Your LAMF Smoothly Without Disrupting Investment Goals

To close the loan, repay the outstanding principal and accrued interest. Once cleared, the lender issues an electronic release to the RTA such as CAMS or KFintech. In 2026’s digital system, this usually takes 24 to 48 hours. Avoid borrowing for a five-year goal without a stable cash flow. A clean exit keeps your units intact so they continue supporting long-term goals like retirement.

During a correction, “LTV Creep” becomes your enemy. If the Nifty falls 10% in a week, your cushion shrinks. Use idle cash to bring the LTV back to 40%. Alternatively, switch your pledge from volatile small-caps to liquid funds. In 2026, advanced platforms allow digital collateral swapping, letting you move the lien to stable assets to prevent selling high-conviction equity units.