Check the loan limit available on your mutual funds portfolio.
Check the loan limit available on your mutual funds portfolio.
Please provide the below details.
What is a loan against mutual funds?
A loan against mutual funds is a secured financial solution where you use your mutual fund units as collateral to borrow funds. With this facility, you don’t need to redeem your mutual funds to access cash. Instead, your investments remain intact and continue earning potential returns, even as they are pledged with the lender.
The lender holds these mutual fund units as security until the loan is repaid. While you cannot sell or redeem the pledged units during this period, you can unlock up to 50% of the value of your equity mutual fund portfolio.
The value of your mutual fund portfolio is calculated based on the Net Asset Value (NAV) of your mutual fund schemes. This is done by multiplying the number of units in each scheme by its respective NAV, and the total value is used to determine the eligible loan amount.
This mutual fund loan option offers flexibility and ensures you can meet your financial needs without disturbing your long-term investment goals.
Features and benefits of our loan against mutual funds
Discover the benefits of choosing our loan against mutual funds.
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15 minute process
Borrowing with DhanLAP is easy. Complete the simple loan process and your loan application will be processed immediately within 15 minutes.
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Fully Digital Process
With DhanLAP’s online loan application process, you will not be required to submit any physical documents at any time during the application process.
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Loan Tenure
We are currently offering loan tenures of 6 months, 12 months 18 months and 24 months.
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Get Instant disbursal to your Bank Account
Apply and get funds directly to any of your bank accounts from the comfort of your home.
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Best Interest Rate
Get a loan at an attractive Interest rate starting at 10% p.a on the utilised amount.
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Loan Value
With DhanLAP you can get a loan starting at a minimum of â‚ą25,000 onwards.
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Retain Ownership
Pledging your investments ensures that your savings grow, and your wealth plan remains intact even while you borrow.
Preclosure charges
At DhanLAP, we offer maximum flexibility for our customers. Hence, there are no pre-payment charges or penalties after 1 month. You can choose when you want to repay the amount.
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Repayment
We offer two repayment options for the loan: EMI and Balloon repayment. You also can choose any date for your monthly repayment from 1 to 28.
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Approved funds across all AMCs
All Equity Mutual Funds offered by all Mutual Fund companies are eligible for loans at DhanLAP. List of AMC
PROCESS
As simple as 1, 2, 3...
Signup
Download our app or Signup with you email and mobile number in web
1
Verification
One-time online verification using your PAN & Aadhaar details
2
Select Mutual Funds
Select the Mutual Funds for which you are going to take loan
3
Bank Verification
Verify your bank account and setup E-mandate
4
Video KYC
Our Agent will verify you and your PAN details via video call
5
Lien marking
Lien mark your funds at CAMS & KFINTECH RTAs
6
Read & E-Sign loan agreement
Digitally sign loan agreement with OTP authentication
7
Overdraft or Immediate disbursal
Overdraft or Immediate disbursal
Whatever you apt for, you will receive your money within the same day
8
Loan against mutual funds calculator
How much will it actually cost?
With our overdraft facility you will pay Installment only on the amount you disburse.
CHOOSE AMOUNT & TENURE
Interest10%
Loan Amountâ‚ą
Tenure
Estimated Installment
EMIâ‚ą
8,791
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EMI(Interest + Principal)
Pay equal monthly installments towards Interest & Principal.
OR
Balloonâ‚ą
833
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Balloon(Interest only)
Pay monthly installments towards interest only. Settle the principal at the end of tenure.
Loan Against Securities
Maximum Annual Percentage Rate (APR): 13%
1. Example - Balloon Payment
-Principal Amount => â‚ą1,00,000
-Annual Interest Rate(APR) = 13%
-Tenure => 12 Months
-Pay only Interest for 12months = â‚ą1083.33 x 12 = 13000. (The principal amount needs to be repaid at the end of the loan tenure)
-Processing Fee = â‚ą1000 + GST
-Stamp Duty = â‚ą20 + GST
-Total Loan Repayment Amount = â‚ą113000 (Principal and Interest)
-Total Cost of Loan = Interest Amount + Processing Fees + Stamp Duty = â‚ą13000 + â‚ą1000 + â‚ą20 = 14020 (Excluding GST)
For the loan against securities with a balloon payment, the borrower pays only the interest amount of â‚ą13000 for 12 months, and repays the principal amount of â‚ą1,00,000 at the end of the 12-month tenure, with a total loan repayment amount of â‚ą1,13,000 and a total cost of loan of â‚ą14,020 (excluding GST).
2. Example - EMI Payment
-Principal Amount => â‚ą1,00,000
-Annual Interest Rate(APR) = 13%
-Tenure => 12 Months
-EMI => Principal + Interest = â‚ą8931.71.
-Processing Fee = â‚ą1000 + GST
-Stamp Duty = â‚ą20 + GST
-Total Loan Repayment Amount = â‚ą107180 (Principal and Interest)
-Total Cost of Loan = Interest Amount + Processing Fees + Stamp Duty = â‚ą7180.52 + â‚ą1000 + â‚ą20 = â‚ą8200.52 (Excluding GST)
For the loan against securities with EMI payment, the borrower repays the loan in equal monthly installments of â‚ą8,931.71 for 12 months. The total loan repayment amount is â‚ą1,07,180.52, and the total cost of the loan is â‚ą8,200.52 (excluding GST), including processing fees and stamp duty.
Eligibility criteria and documents required for loan against mutual funds
Applying for a loan against mutual funds is easy and convenient. Simply meet the basic eligibility criteria and keep the required documents ready to proceed.
Eligibility Criteria
Eligibility criteria required for loan against mutual funds
You should be between 18 and 65 years of age
Your entire mutual fund portfolio should not be less than â‚ą50,000
You should hold Mutual Funds approved with CAMS & Kfintech (RTAs). Debt & ELSS funds are not eligible.
Joint mutual fund holders are not eligible for loan
You should be an Indian resident
Documents Required
Documents required for loan against mutual funds
(This is an end-to-end digital process. Hence, no physical documents are required to be submitted.)
Aadhaar number
PAN Number
Bank IFSC code
Bank Account number
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Mobile number associated with your Aadhaar & Bank account
How to apply for a Loan Against Mutual Funds
Follow our simple step-by-step process to access funds using your mutual fund investments:
Step 01
Download the app or sign up on our website using your email and mobile number.
Step 02
Complete the verification process using your PAN and Aadhaar details. This ensures your identity is securely confirmed.
Step 03
Select the mutual funds you wish to pledge as collateral for the loan. The system will show your available funds.
Step 04
Verify your bank account and set up an e-mandate to ensure easy loan repayment.
Step 05
A agent will conduct a video KYC to verify your identity and PAN details.
Step 06
Your mutual funds will be lien marked at CAMS and KFintech RTAs as collateral for the loan.
Step 07
You will be asked to review and digitally sign the loan agreement using OTP authentication.
Step 08
After all verifications, the loan amount will be credited directly to your bank account. You can opt for an overdraft or immediate disbursal.
Frequently asked questions
Frequently asked questions
Why Choose Loan Against Mutual Funds (LAMF)?
Loan Against Mutual Funds (LAMF) offers a smart and efficient way to unlock liquidity without disrupting your investments. Instead of redeeming your mutual fund units, you can use them as collateral to secure a loan while your investments continue to generate potential returns.
With features like zero documentation, quick approvals, and flexible repayment options, LAMF is an ideal solution for managing short-term financial needs or emergencies without sacrificing your financial goals.
What is the loan-to-value (LTV) offered for a loan against mutual funds?
The maximum loan amount you can receive against your mutual funds depends on the type of funds you hold. The loan-to-value currently offered is:
1. Equity mutual funds: Up to 50% of the fund’s value.
2. Debt mutual funds: Up to 70% of the fund’s value.
What is the interest rate of loan against mutual funds at DhanLAP?
At DhanLAP the interest rate of the loan against mutual funds is starts from 10% p.a.
How many funds are approved for availing a loan against mutual funds?
Can I lien mark any mutual fund units of my choice?
Yes, you can lien mark any equity mutual fund units of your choice in your mutual fund portfolio. We will show you an optimal allocation for lien marking depending on your portfolio and loan amount that you had asked for.
You can change the schemes and units and have your own allocation for lien marking. We are completely flexible with it
Is it possible to make a part prepayment or foreclose the loan before tenure ends?
Yes, DhanLAP allows you to prepay or foreclose your loan at any time without any prepayment charges. However, prepayment can be initiated only after the first successful EMI or interest payment.
Is interest charged on the entire loan limit?
No, interest is charged only on the loan amount you draw or the outstanding loan balance.
Funds from which AMCs can be pledged to avail of a loan against mutual funds?
Mutual funds registered with CAMS (Computer Age Management Services) and KFintech (RTAs) can be pledged.
What documents are required to apply for a loan against mutual funds with DhanLAP?
To ensure a smooth and fully digital onboarding process, you don't need any physical documents. Keep the following details ready:
1. Aadhaar number
2. PAN card
3. Bank account number
4. IFSC code
5. Access to the mobile number linked with your Aadhaar and bank account for OTP-based verifications.
What is the minimum and maximum loan a customer can get through Loan Against Mutual Funds?
The minimum amount is â‚ą25,000/- and the maximum amount is â‚ą5 crore for equity and debt mutual funds.
What happens when the value of my mutual fund units falls?
If the total value of your mutual fund units falls below 90% of the lien marked value, you will get a warning email and sms to replenish the amount.
If the value falls below 80% you will get a final warning email and sms to replenish the amount.
If the value falls below 75% of the lien marked value, we will sell the mutual fund units and take our principal and interest and transfer the remaining amount to your bank account.
Can I view the list of mutual fund units pledged with DhanLAP?
Yes, you can view the list of mutual fund units pledged with DhanLAP directly in the loan dashboard. Log in to your DhanLAP account on the app or web portal, and go to the "Loan Details" section. Here, you can access a detailed summary of all mutual fund units pledged as collateral for your loan.
Can I choose my preferred date for auto-debit or e-mandate repayment with DhanLAP?
Yes, DhanLAP provides flexibility in setting up your auto-debit or e-mandate repayment date, with most partner NBFCs allowing you to select any date between the 1st and 28th of the month. However, the availability of this option may vary depending on the specific NBFC facilitating your loan. DhanLAP ensures seamless coordination with its partners to offer convenient repayment schedules wherever possible
How can I release my mutual funds?
You can release your pledged mutual funds after repaying the loan. Once the request is verified, the lien is removed promptly. Usually, lien will be released within two working days.
How much time does it take to complete the loan application process with DhanLAP?
The loan application process with DhanLAP is entirely digital and can be completed within 15 minutes, offering a seamless and hassle-free experience.
How quickly is the loan amount disbursed with DhanLAP?
With DhanLAP, the loan amount is disbursed on the same day once the digital process, including lien marking and verification, is successfully completed.
What steps should I take if I encounter an error during the Loan Against Mutual Funds account opening process?
In case you face any issues, you can contact our support team at contact@dhanlap.com or call our helpline number 6379699343 (Monday to Saturday 9 am to 6 pm, excluding holidays).
CHARGES
We are transparent about our charges
Minimum loan amount
â‚ą25,000
Loan Tenure
6 months to 24 months
Interest rate
Starting from 10% p.a (on utilized amount)
You can opt for overdraft facility. And pay installments only on utilized amount.
Processing Fee
1.5% 1%*
For e.g., You’ll pay ₹ 500 for ₹ 50,000 loan amount.
ONE-TIME LIEN MARKING CHARGES
Stamp Duty
â‚ą200 + â‚ą36 GST
CAMS Lien marking charges
â‚ą500 + â‚ą90 GST
Charged only if you lien mark funds managed by CAMS
KFintech Lien marking charges
â‚ą300 + â‚ą54 GST
Charged only if you lien mark funds managed by KFintech
Your mutual fund investments are working hard, but did you know they can also provide you with instant funds when you need them, without disrupting your financial goals? Rather than selling or redeeming your units,
Your mutual fund investments are working hard, but did you know they can also provide you with instant funds when you need them, without disrupting your financial goals? Rather than selling or redeeming your units,
