When compared to personal loans, a loan against mutual funds stands out for its lower cost and faster approval process. The secured nature of LAMF allows interest rates between 9–13%, while personal loans often exceed 14–18%. Borrowers can pledge existing mutual fund units through digital platforms, eliminating extensive paperwork. Since ownership remains intact, investors continue to benefit from market gains. LAMF serves as an efficient alternative for short-term liquidity without compromising long-term portfolio objectives.