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Understanding LAMF Interest Rates, LTV Ratios, and Margin Calls
LAMF interest rates are lower due to collateral backing, but investors must understand LTV limits and margin call risks linked to market volatility.
Interest rates on loans against mutual funds are typically lower than unsecured loans because the borrowing is backed by financial collateral. Rates vary based on fund type, portfolio quality, and lender policies. Debt funds usually receive higher loan to value ratios than equity funds.
LTV determines how much an investor can borrow against pledged units, generally capped at 50–70%. Market fluctuations can affect the value of collateral, and if it falls below prescribed levels, lenders may issue margin calls. Apply Now