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Why investors prefer loans backed by mutual fund units
Loans backed by mutual fund units are becoming popular due to lower interest costs, flexible repayment, and the ability to retain investment ownership.
Secured borrowing options are gaining preference as interest rates on unsecured loans remain elevated. Loan Against Mutual Funds offers relatively lower borrowing costs by using pledged mutual fund units as collateral. Investors retain ownership of their portfolio while accessing funds for emergencies or planned expenses. The structure reduces credit risk for lenders and results in flexible repayment terms for borrowers. Apply Now