LAMF Interest Rates Comparison: Banks vs. NBFCs

Interest rates for Loans Against Mutual Funds in 2025 generally range between 9% and 12.5% annually. Major public-sector lenders like SBI and HDFC Bank price loans at around 9.5–10.5%, while private banks such as ICICI and Kotak Mahindra average 10–11%. NBFCs including Bajaj Finance and Tata Capital charge 11–12.5%, offering quicker disbursal and easier documentation. Debt schemes usually attract lower rates (9–10%) than equity funds (10.5–12%) because of volatility. Borrowers can choose fixed or floating rates depending on rate-cycle expectations.