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Understanding Loan to Value Ratio in LAMF
LTV ratio defines borrowing limits under Loan Against Mutual Funds.
Loan to Value ratio determines how much borrowing investors can access against pledged mutual fund units. Typically ranging between fifty to seventy percent depending on fund category, this ratio protects lenders from volatility risks. Equity funds may attract lower LTV compared to debt schemes. Investors must understand margin requirements and potential top up triggers. Full process details are explained clearly.Apply Now