neutral
Recently
Loan Against Mutual Funds vs Personal Loan: Cost, Risk, and Flexibility Compared
LAMF offers lower interest and tax efficiency compared to personal loans but requires monitoring market-linked collateral value and margin requirements.
Borrowers often evaluate loan against mutual funds and personal loans when faced with short-term funding needs. While both provide liquidity, their cost structures and risk profiles differ significantly. A personal loan is unsecured and typically carries higher interest rates due to credit risk borne by the lender.
In contrast, a loan against mutual funds is secured by existing investments. This collateral lowers interest rates and allows borrowers to access funds without liquidating assets. Apply Now