A Loan Against Mutual Funds (LAMF) allows investors to pledge mutual-fund units as collateral and borrow funds without redeeming them. Lenders typically offer up to 50% of NAV for equity funds and up to 70–90% for debt funds. Interest is charged only on the drawn amount, and the units continue to earn returns while pledged. Eligibility criteria include PAN-linked holdings, KYC compliance and bank account linkage. Digital platforms enable approvals within minutes and online lien-marking, giving a fast alternative to traditional personal loans when cash-flow needs arise.