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Loan Against Securities

ABC Solutions

Loan Against Mutual Funds

Financing your Growth can be fueled from your Investments
  • Register yourself
  • Provide basic documentation
  • Get loan disbursal in no time
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About the Loan Against Mutual Funds

P​eople invest in mutual funds owing to its prowess in offering convenience, asset diversification and long-term gains. However, apart from yielding good economies of scale in terms of lower transaction costs (as compared to buying individual stocks), mutual funds offer another benefit: liquidity in times of financial distress. Taking a Loan Against Mutual Fund units (LAMF) helps you leverage your existing mutual fund investments.

Why Loan Against Mutual Funds (LAMF) ?

Loan Against Mutual Funds offers customers the opportunity of receiving immediate liquidity against the mutual fund units they own. This is essentially an overdraft facility for short-term monetary requirements, with a relatively shorter tenure than other loans. You may take a loan against the mutual funds you own to earn immediate returns on it, as well as earn surplus reserves to invest elsewhere. To avail of a Loan Against Mutual Funds (LAMF), the borrower must request the Mutual Fund Registrar to mark a lien against the mutual fund units.

Is Loan Against Mutual Funds (LAMF) for you?

The LAMF is a beneficial monetary tool for those looking to leverage their otherwise idle mutual fund investments, and raise capital quickly for short-term financing needs. You need not sell your mutual fund units, nor is your ownership of the fund units divested after pledging them for a loan. Aditya Birla Finance also enables the borrower to buy additional mutual fund units even when they don't have the entire amount of money required. The borrower may bring in the margin amount and we will provide the balance amount as loan. However, the loan amount is subject to the quality of the mutual funds in your possession.

Aditya Birla Finance Loan Against Mutual Funds (LAMF) process

  • Collateral: Owned mutual fund units (as per approved list of mutual funds).
  • Tenure: Up to 1 year.
  • Minimum Loan Amount: Rs 25 lakh.
  • Loan Amount Margin: 10% to 50% depending on the securities furnished.

Please ask us for the list of approved mutual fund houses at the time of making your loan application.

So what next ?

  • If you want to apply for Loan Against Mutual Funds, download the application form.
  • Our Relationship Manager can meet you at your convenience.

Do you have questions?

Call 1800 270 7000 or write us at care.finance@adityabirlacapital.com.

What do we offer?

  • Loan Against Shares

A term loan against your equity shares that gets you financial flexibility without disrupting your long-term investment strategy. Loan Against Shares is better than loan against other securities like property or gold.

  • Loan Against Mutual Funds

We offer you the opportunity to receive immediate liquidity against your mutual fund units. Loan Against Mutual Funds is an overdraft facility for short-term monetary requirements with a shorter tenure.

  • Loan Against Life Insurance Policy

Leverage your existing life insurance policies to quickly generate cash reserves. Loan Against Life Insurance Policies helps you liquidate existing policy(ies) to get funds for professional or business purposes.

  • IPO Financing

ABFL offers you an opportunity to leverage your funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing bridges the gap between required funds and the resources at hand at a predefined margin.

  • Promoter Funding

ABFL’s Promoter Funding is one of the most reliable business funding options against your shares. It helps you gain a financial solution without disrupting your long-term investments. 

A term loan against your equity shares that gets you financial flexibility without disrupting your long-term investment strategy. Loan Against Shares is better than loan against other securities like property or gold.

We offer you the opportunity to receive immediate liquidity against your mutual fund units. Loan Against Mutual Funds is an overdraft facility for short-term monetary requirements with a shorter tenure.

Leverage your existing life insurance policies to quickly generate cash reserves. Loan Against Life Insurance Policies helps you liquidate existing policy(ies) to get funds for professional or business purposes.

ABFL offers you an opportunity to leverage your funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing bridges the gap between required funds and the resources at hand at a predefined margin.

ABFL’s Promoter Funding is one of the most reliable business funding options against your shares. It helps you gain a financial solution without disrupting your long-term investments.