Need quick cash but don’t want to sell your mutual funds? That’s exactly where Loan Against Mutual Funds (LAMF) comes in, a smart borrowing option that lets you pledge your investments and access liquidity while your money stays invested and continues earning returns.
With India’s fintech boom, several apps now offer instant, paperless LAMF with competitive interest rates and flexible repayment. Here’s a curated list of the best apps to consider.
What Makes a Good LAMF App?
Before diving into the list, here are key factors to evaluate:
- Interest rates (typically ~9%–14% p.a.)
- Loan-to-Value (LTV) (up to ~50% for equity funds, ~80% for debt funds)
- Disbursal speed (instant or same-day preferred)
- Flexibility (overdraft/credit line vs fixed loan)
- Digital experience (paperless, easy lien marking)
Best Apps To Get Loan Against Mutual Funds in India
Groww Credit
Groww Credit by Groww offers one of the most feature-rich and investor-friendly loan against mutual funds (LAMF) platforms in India.
Instead of redeeming your mutual funds, the platform allows you to pledge your holdings and create a flexible credit line, ensuring your investments remain active in the market and continue to generate returns through compounding.
One of its biggest advantages is the credit line structure, which works like an overdraft facility rather than a fixed loan. You can get a sanctioned limit of up to ₹15 crore (depending on your portfolio value) and withdraw funds whenever needed. Interest is charged only on the amount used.
Another key feature of Groww Credit is complete control over your portfolio. Groww allows you to choose exactly which mutual funds and how much of them you want to pledge, rather than locking your entire portfolio.
The entire experience is 100% digital and extremely fast. Users can fetch their mutual fund holdings, check eligibility, complete KYC, set up a bank mandate, and pledge funds, all within the app. Loan approval and disbursal typically happen within minutes.
Volt Money
Volt Money is a fintech platform built specifically for loans against securities, including mutual funds. It stands out for its completely paperless journey, where users can check eligibility, pledge funds, and withdraw money digitally in just a few steps.
Volt Money partners with RBI-regulated lenders to provide loans, ensuring both compliance and reliability. The platform is known for quick approvals and flexible repayment structures, making it ideal for users who need urgent funds without going through lengthy bank procedures. Its simplicity and speed make it one of the top choices for instant loans against mutual funds in India.
FundsApp
FundsApp is a relatively simple and focused platform that provides loans against mutual funds with minimal complexity. It is designed for users who want a quick and straightforward borrowing experience without navigating through multiple features or services. The app offers fast approvals, flexible repayment options, and a clean interface that makes the process easy to understand even for first-time borrowers. Its no-frills approach makes it a good option for users who prioritize simplicity and efficiency.
Paytm Money
Paytm Money offers a convenient option for users already familiar with the Paytm ecosystem. The platform integrates loan services with its investment features, allowing users to pledge mutual funds directly within the app. The process is fully digital and designed for ease of use, with quick eligibility checks and relatively fast approvals through partner NBFCs. While it may not always offer the lowest interest rates, its convenience and accessibility make it a strong contender, especially for users who prefer managing all financial activities, from payments to investments and loans, in a single app.
Bajaj Finserv
Bajaj Finserv is one of India’s most trusted NBFCs and offers a structured and reliable loan against mutual funds product. Unlike newer fintech apps, Bajaj Finserv brings the credibility of an established financial institution along with competitive interest rates and a wide range of supported mutual funds. The platform provides pre-approved loan limits for eligible users and ensures a smooth borrowing experience backed by strong customer support. It is particularly suited for borrowers who prioritize trust, stability, and a well-regulated lending environment over purely digital convenience.
HDFC Bank
HDFC Bank provides a secure and dependable option for investors looking to take loans against their mutual fund holdings. As a leading private sector bank, it offers competitive interest rates, flexible repayment options, and a robust digital interface for loan processing. While the process may be slightly more formal compared to fintech apps, it ensures a high level of transparency and safety. HDFC Bank is a great choice for conservative borrowers who prefer dealing with a reputed bank and value long-term reliability over instant processing speed.
Conclusion
Loans against mutual funds have become significantly more accessible in India thanks to these digital platforms. Whether you prioritize low interest rates, instant disbursal, or institutional trust, there is an option tailored to your needs. Fintech apps like Groww and Volt Money excel in speed and user experience, while traditional players like HDFC Bank and Bajaj Finserv offer unmatched credibility. Choosing the right platform ultimately depends on your preferences, speed, cost, or trust, along with your existing investment ecosystem.
