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Read MoreLoan Against Securities (LAS)
Loan Against Securities (LAS) in Mutual Funds is a facility offered by banks and NBFCs that allows investors to borrow money by pledging their mutual fund units as collateral, instead of redeeming them. It’s a way to unlock liquidity without disturbing your investment portfolio.
Benefits of LAS:
- No need to sell your investments
- Continue to earn returns/dividends
- Instant liquidity for emergencies or opportunities
- Flexible repayment
Use Cases:
- Short-term business needs
- Paying for large expenses without liquidating long-term investments.
Key Features of LAS in Mutual Funds
Feature | Details |
Eligible Securities | Equity and hybrid mutual fund schemes (mostly) |
Loan Amount | 50%–80% of fund value (varies by fund type & lender) |
Tenure | Usually up to 6–84 months |
Interest Rate | Approx Flat 6-7% or Reducing 12% |
Disbursal Time | Quick – within 24 to 48 hours |
Repayment | EMI |
Example : EMI calculation for 1 Lakh Loan
