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Understanding how loans against mutual funds work in India
Loan Against Mutual Funds enables investors to raise liquidity without selling holdings, preserving long-term investment exposure while meeting short-term financial requirements efficiently.
Loan Against Mutual Funds allows investors to borrow money by pledging their existing mutual fund units as collateral. Instead of selling investments, lenders provide liquidity based on fund value and category. Borrowers continue to earn market linked returns while paying interest on the loan. This structure offers flexibility during short-term cash needs without disrupting long-term investment goals significantly.Apply Now