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Understanding how Loan Against Mutual Funds works in India
Loan Against Mutual Funds allows investors to pledge units, access liquidity, and stay invested while meeting short-term financial needs.
Loan Against Mutual Funds operates by pledging eligible mutual fund units as collateral to access funds. The loan amount depends on the loan to value ratio set by the lender. Interest is charged only on the amount used, and repayment is flexible. Investors continue to benefit from market participation while accessing liquidity. Understanding these mechanics ensures responsible borrowing decisions. Apply Now