Loan Against Mutual Funds

Don’t Redeem it, Lien it Instead

Get instant financial assistance with Loan Against Mutual Funds and manage your unplanned expenses without having to liquidate your investments. Secure the funds you need within 15 minutes at just 9.5% p.a through an end-to-end digital process. Experience hassle-free process with digital loan against mutual funds.

What is Loan Against Mutual Funds?

Loan Against Mutual Funds (LAMF) is a financial solution that allows you to create an overdraft facility against your mutual fund units. With Mirae Asset Financial Services, you can easily lien mark your funds digitally and raise the funds you need.

The loan is available as an overdraft facility, allowing you to access the funds you need and repay them at any time without additional charges Interest is charged only on the utilized amount and for the duration, the funds are utilized.

You can choose from a variety of approved mutual funds from various asset management companies (AMCs) in India and use them as collateral. To lien mark, you can use mutual funds registered with CAMS and KFintech (previously known as KARVY), Registrars & Transfer Agents (RTAs) as collateral. We suggest using a secured loan against mutual funds as a suitable option for short or medium-term financial needs.

Features & Benefits of LAMF

Get LAMF Limit Online Within Minutes
No need to wait for days. Complete 6 simple steps to get an overdraft limit against mutual funds within minutes using the MAFS mobile app. Your application will be processed instantly to provide you with a limit within minutes.
Zero Foreclosure Charges
No lock-in & no foreclosure charges if you decide to repay your outstanding's early. You can make payment towards your outstanding amount anytime with zero foreclosure charges.
Instant Disbursal
MAFS provide access to funds whenever you need them. Get the required amount credited directly to your provided bank account on the same day.
Large List of Approved Securities
Select from a large list of approved mutual funds from different asset management companies (AMCs) in India. You can lien mark mutual funds registered with both CAMS & KFintech (earlier known as KARVY), Registrars & Transfer Agents (RTAs).
100% Digital Process
No need of visiting branches or reaching out to relationship managers. With the MAFS mobile app you can complete your entire journey online from your mobile device without any need of submitting physical documents.
Retain Ownership
Allow your mutual funds to achieve long-term goals. You continue to retain ownership of your mutual funds and reap all the benefits that are associated with it.
Attractive Interest Rate
Avail loan at an attractive Interest rate starting 9.5% p.a (on utilized amount) with flexi payment option. Unlike term loans, interest on LAMF is levied only on the amount you use and for the number of days you utilize.
Loan Tenure
The overdraft limit provided against your mutual funds has a tenure of 12 months and is renewed thereafter.
Higher Loan Value
One place for all your financial requirements. With MAFS you can get a higher limit up to Rs 1Cr in case of equity mutual funds (45% LTV) and up to Rs 3Cr in case of debt mutual funds (80% LTV).
Easy Repayment
Manage your funds with more flexibility. You are required to service the interest amount accrued as per utilization on a monthly basis.

How to Avail?

You can easily avail loan on mutual funds by following these 6 simple steps. It is recommended to have your PAN, Aadhaar card, and bank account information readily available during the application process for a seamless experience.
  • 1
    Download the app or apply via web
  • 2
    Select type of mutual funds
    (viz equity or debt mutual funds)
  • 3
    Complete one-time KYC registration with PAN & Aadhaar details
    (Details can be fetched directly from Digilocker if your Aadhaar is linked with your mobile number)
  • 4
    Lien mark at RTA's (CAMS / KFintech)
    portal through One-Time Password (OTP) authentication
  • 5
    Verify your bank account online via e-mandate
  • 6
    Read & sign loan agreement online
  • Your overdraft facility is ready

Loan Details & Charges

Our aim is to cater to your financial needs with utmost transparency and no hidden charges.
Maximum Loan Amount
Loan Against Equity
Mutual Funds

(45% LTV)
Loan Against Debt
Mutual Funds

(80% LTV)
Minimum Loan Amount
Loan Tenure
12 Months
& renewable thereafter
Fixed Processing Fees
+ taxes as applicable
Penal Charges
15.00% P.A. + taxes on the overdue amount for the default period**
Minimum Withdrawal Amount
₹1,000. However, there is no limit on the number of withdrawals.
Interest Rate
9.5% p.a. (on utilized amount) Interest will be due on 1st working day of every month and the same will be debited on 3rd working day of every month from your Bank Account via NACH mandate.
Stamp Duty
Foreclosure Charges
ZERO Foreclosure charges
Bounce Charges
₹500 + taxes as applicable
Annual Renewal Charges
Bank Mandate Swap Charges
Top Up/Security withdrawal Charges
Security Invocation Charges
(in case of default)
Collection Charges
(in case of default)
Legal Charges
(in case of default)
Annual Percentage Rate (APR)
9.5% to 26.3% per annum
(including fees)
Minimum Period
12 Months
Maximum Period
12 Months

* Taxes as applicable

**Applicable for new loans. The applicable penal charges on existing loans, shall be updated on our mobile application, website and also communicated over Email & SMS to all such borrowers, not later than 30th June 2024.

Let's understand with an example:

If a customer takes a loan of ₹50,000 for a period of 12 months, at an annual interest rate of 9.5% APR, then the customer will pay monthly interest for 12 months of ₹396 per month. The total loan payment over 12 months will be ₹54,752* (including principal and interest). Total Cost of Loan = Interest Amount + Processing Fees + Stamp Duty = ₹4752 + ₹999 + ₹500 = ₹6,251*

* Taxes as applicable

Things You Should Know

Everything you need to know before and after availing an overdraft loan against mutual funds.

Yes, you can partially depledge mutual funds digitally without visiting a branch or any physical paperwork. If you want to replace one mutual fund with another, you will have to complete depledge of the mutual fund via partial security withdrawal facility & add another mutual fund using top-up facility.

The revised eligible limit will be calculated on the basis of revised collateral value of underlying mutual funds. Eligible limit = Collateral value x LTV%.

For partial security depledging follow below steps

  • - Login to mobile app or web.
  • - Go to transaction tab and click security withdrawal.
  • - Select loan account & application number under which mutual funds are pledged.
  • - Select the mutual funds and number of units to depledge.
  • - Click calculate to check revised collateral value, revised available limit & revised total limit.
  • - Verify via OTP authentication. Your request is submitted.

Your request will be reviewed and processed accordingly. The mutual funds will be released within 24 working hours.

Note: Security withdrawal charges of Rs 500/- + Taxes will be applicable in case of partial security withdrawal. There are no charges for the foreclosure of loan account.

A Close-ended or locked-in units of mutual funds are not part of the approved list of mutual funds. Lock-in free units of ELSS/ Tax saver funds are eligible for pledging or lien marking and availing loan against mutual funds. You can check approved list of mutual funds from

In case of interest bounce, the entire interest amount and other charges become overdue. The borrower will be requested to make overdue payment using the Pay Now facility. If the borrower fails to make overdue payment within 74 days, Mirae Asset Financial Services reserves the right to invoke/ sell the underlying mutual funds to the extent of overdue amount and recover.

The account can also enter in overdue state if the value of mutual funds drop and the utilized amount is more than the revised eligible limit. The difference between the utilized amount and the revised eligible limit in such case becomes overdue.

You may deposit additional cash equivalent to the overdue amount or deposit additional mutual funds via top-up. If pledged collateral value increases again the account is automatically regularized.

Mutual funds from both CAMS and Kfintech can be lien marked or pledged in a single loan account. You will have to create a loan account by lien marking or pledging mutual funds with any one RTA. Post the loan creation you can use the top-up facility to lien mark or pledge mutual funds from other RTA. You will get a single loan account with an eligible amount calculated based on mutual funds lien marked or pledged from both RTAs.

Note: Processing fee of Rs 999/- + Taxes will be applicable for the first loan & a Top-up fee of Rs 500/- + Taxes will be applicable for Top-up.

To pledge both Equity Mutual Funds and Debt Mutual Funds, two separate loan accounts will have to be created.

An eMandate serves as a digital payment solution that enables Indian businesses to easily collect recurring payments without the need for human intervention. Mandate limit refers to the maximum permissible amount that can be deducted from the account holder's bank account through an automated payment system. However deductions on your account will only be as per actuals.

Loan against mutual funds is provided as an overdraft facility. Hence there is no fixed repayment schedule or EMI for the principal amount. You can make principal repayments anytime during the loan tenure as per your convenience. You will be charged only interest on a monthly basis which will be auto debited from the registered bank account. Interest is calculated based on the utilized amount and for a number of days the amount is utilized.

If your loan account creation fails after pledging the mutual funds, your mutual funds will be absolutely safe and secure since the lien marking or pledging happens at RTAs. You can reach customer support at 1800 2099 180 (Monday to Friday, 9am to 6pm) or write at The support team will either clear the issue faced or send your mutual funds for de-pledging to RTAs.

On maturity, you have an option of renewing your loan account for further 12 months. If renewed, any principal amount utilized is carried forward to the next year. If you wish not to renew your loan account, you will be requested to repay the outstanding amount before maturity date. The utilized amount if any on maturity will become overdue and the same needs to be repaid within 7 days.

If the money is debited from the bank account and is not reflected in the loan account, the transaction may be pending at your bank. It will reflect in the loan account within 72 working hours or the amount will be refunded back to the bank account. If the transaction remains pending beyond this timeframe, please contact your bank, as the transaction is still in process on their end.

Eligibility & Documentation

The entire process is end-to-end digital, eliminating the need to submit any physical documents. You can apply for a limit, withdraw funds, and repay the used amount through the mobile app, without needing to visit any branches.
  • You should be a resident Indian individual
  • You should have a valid PAN & Aadhaar Card
  • You should hold mutual funds approved as per MAFS policy with CAMS & Kfintech (RTAs)
  • You should be between 18 to 75 years of age
  • You should have a valid email id and mobile number
  • You should have a valid bank account number and a cheque copy for the account to be linked

Digital Partners


Approved Funds from Multiple AMCs

  • UTI Mutual Fund
  • Union Mutual Fund
  • Tata Mutual Fund
  • Sundaram Mutual Fund
  • SBI Mutual Fund
  • Quant Mutual Fund
  • PPFAS Mutual Fund
  • PGIM India Mutual Fund
  • Nippon India Mutual Fund
  • Motilal Oswal Mutual Fund
  • Mirae Asset Mutual Fund
  • Mahindra Manulife Mutual Fund
  • LIC Mutual Fund
  • L&T Mutual Fund
  • Kotak Mahindra Mutual Fund
  • Invesco Mutual Fund
  • IIFL Mutual Fund
  • IDFC Mutual Fund
  • IDBI Mutual Fund
  • ICICI Prudential Mutual Fund
  • HSBC Mutual Fund
  • HDFC Mutual Fund
  • Edelweiss Mutual Fund
  • DSP Mutual Fund
  • Canara Robeco Mutual Fund
  • Baroda BNP Paribas Mutual Fund
  • Axis Mutual Fund
  • Aditya Birla Sun Life Mutual Fund
  • Navi Mutual funds

UTI Mutual Fund | Union Mutual Fund | Tata Mutual Fund | Sundaram Mutual Fund | SBI Mutual Fund | Quant Mutual Fund | PPFAS Mutual Fund | PGIM India Mutual Fund | Nippon India Mutual Fund | Motilal Oswal Mutual Fund | Mirae Asset Mutual Fund | Mahindra Manulife Mutual Fund | LIC Mutual Fund | L&T Mutual Fund | Kotak Mahindra Mutual Fund | Invesco Mutual Fund | IIFL Mutual Fund | IDFC Mutual Fund | IDBI Mutual Fund | ICICI Prudential Mutual Fund | HSBC Mutual Fund | HDFC Mutual Fund | Edelweiss Mutual Fund | DSP Mutual Fund | Canara Robeco Mutual Fund | Baroda BNP Paribas Mutual Fund | Axis Mutual Fund | Aditya Birla Sun Life Mutual Fund | Navi Mutual funds


  • Credit limit is at the sole discretion of Mirae Asset Financial Services (India) Pvt Ltd.
  • The Loan Against Mutual Funds is for personal use. The loan amount cannot be used for speculative activities, capital market-related purposes, or anti-social purposes.
  • In case of repayment, payment is considered successful upon reflection or settlement within Mirae Asset Financial Services' system; additionally, interest will accrue (if applicable) until the settlement date.