Loan Against Mutual Funds (LAMF) borrowers should look beyond headline rates to assess total cost. Key charges include: processing fees of 0.5–2% (₹5,000–₹20,000 for ₹10 lakh), legal or documentation fees of ₹500–₹2,000, and prepayment penalties of 2–4% if closed within a year. Lenders may also levy annual maintenance fees (₹500–₹1,500), margin call charges (~₹500), and late payment interest of 2–3% per month. Premium customers sometimes receive fee waivers. Always calculate effective borrowing cost including these hidden expenses.