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Loan against mutual funds seen as tactical credit tool for short-term needs
Loan against mutual funds is being positioned as a short-term credit tool that helps investors meet temporary funding needs while maintaining investment exposure and avoiding premature portfolio exits.
Market participants are increasingly viewing loan against mutual funds as a tactical credit solution rather than a long-term borrowing option. The facility allows investors to pledge eligible mutual fund units to raise funds while keeping portfolios invested. Loan limits vary based on fund category and prevailing valuations. Financial planners note that this option can help address short-term requirements such as emergencies or planned expenses, provided borrowers remain mindful of interest costs, margin risks, and timely repayment obligations. Apply Now