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How Interest Rates Are Calculated on Loans Against Mutual Funds
LAMF interest rates depend on fund type and utilisation, offering lower borrowing costs than unsecured loans when managed with discipline.
Interest rates on a Loan Against Mutual Funds are typically lower than unsecured loans because the borrowing is backed by pledged mutual fund units. Rates vary depending on the lender, type of fund pledged, and prevailing market conditions. Debt mutual funds generally attract lower interest rates than equity funds due to reduced volatility. Interest applies only to the amount used, making LAMF cost efficient for short term needs. Apply Now