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Understanding How Loan Against Mutual Funds Works in India
Loan Against Mutual Funds involves pledging fund units as collateral to access credit while retaining ownership of investments and managing market-linked risks.
Loan Against Mutual Funds works by pledging eligible mutual fund units as collateral to secure a loan. Lenders offer a percentage of the portfolio value, known as the loan to value ratio. The investor continues to own the funds while paying interest only on the borrowed amount. Market fluctuations may impact collateral value, making regular monitoring important. Apply Now