Need urgent funds but don’t want to redeem your mutual fund investments? A Loan Against Mutual Funds (LAMF) can be a smart solution. Instead of selling your investments (and potentially missing out on future gains), you can pledge your mutual fund units as collateral and get instant liquidity, often within hours.
Thanks to fintech innovation, several Indian apps now offer 100% digital, paperless loans against mutual funds with competitive interest rates and flexible repayment options.
Here’s a detailed look at the best apps for instant loan against mutual funds online in India.
Best Apps for Loan Against Mutual Funds Online
Groww Credit
Groww Credit is the best app to get an instant loan against mutual funds online. It is a smart choice if you’re already using Groww for investing. Groww Credit allows investors to unlock liquidity without disrupting long-term investment goals. Since it’s integrated within the Groww ecosystem, the process is smooth for existing users.
Key features:
- Seamless integration: If you hold mutual funds on Groww, you can check eligibility and pledge units directly from your investment dashboard.
- Credit line facility: Once approved, you get a credit line of up to 15 cr which you can withdraw from anytime within the tenure. Only interest on the used amount is charged.
- Flexible pledge: You don’t need to pledge your entire portfolio; choose specific funds to pledge.
- No selling required: funds continue to earn returns while pledged, and you save on capital gains tax.
Volt Money
Volt Money is another well-known digital platform that specialises in loans against securities, including mutual funds. It focuses on providing a fast and user-friendly experience. Borrowers can check their eligibility online, pledge their mutual funds digitally, and receive funds in a relatively short time frame.
Key features:
- Eligibility check in seconds
- No foreclosure or prepayment charges
- No minimum CIBIL score requirement (in many cases)
Jupiter
Jupiter, primarily known as a digital banking app, also offers loans against mutual funds. The platform combines banking and credit features within a single app, providing a convenient experience for users managing their finances digitally. Flexible repayment options and a modern app interface make it appealing to tech-savvy users.
What you get:
- Fully paperless journey
- Funds credited quickly after pledge confirmation
- Flexible EMI or overdraft-style repayment
- High loan limits depending on portfolio value
FundsApp
FundsApp is a dedicated platform that provides loans against both mutual funds and shares. It offers an entirely digital journey, from application to lien marking and disbursal. The platform focuses on simplicity and transparency, helping users unlock liquidity from their investment portfolios without complicated documentation. It is suitable for investors who prefer a specialised service provider for secured loans.
Highlights:
- Easy online KYC
- Quick lien marking process
- Flexible repayment structure
- Competitive interest rates
Quicklend
Quicklend and similar fintech lenders also offer loans against mutual funds through online platforms. These services typically allow borrowers to pledge eligible mutual fund units and receive a sanctioned limit based on the loan-to-value ratio. The process is generally straightforward, with digital verification and flexible repayment structures.
Why consider it:
- Quick online approval
- Multiple collateral options
- Flexible credit usage
- Transparent process
Interest Rates & Charges (What to Expect)
- Interest Rate: Typically 8%–12% per annum (varies by lender and profile)
- Loan-to-Value (LTV):
- Debt funds: Higher LTV
- Equity funds: Lower LTV (due to market risk)
- Debt funds: Higher LTV
- Processing Fees: May apply (often 0–2%)
- Tenure: Flexible, often structured as overdraft facility
Always compare:
- Effective interest rate
- Processing charges
- Prepayment/foreclosure terms
- Minimum and maximum loan limits
Conclusion
A loan against mutual funds is one of the most cost-effective and intelligent borrowing options for investors in India. With fully digital apps like Groww Credit, Volt Money, Jupiter, FundsApp, and others, accessing funds is now faster than ever.
Used wisely, LAMF can help you manage emergencies, business cash flow, or short-term goals without interrupting your wealth creation journey.
Read More From Techbullion