Supercharge your Mutual Fund Investments with Loan Against Mutual Funds

CHENNAI, India - July 12, 2024 - PRLog -- Supercharge Your Investments with Loan Against Mutual Funds

Unlock the potential of your mutual fund investments with loans against mutual funds. Access funds quickly without selling your investments, retaining ownership and benefiting from growth and dividends.

Key Highlights:

What is a Loan Against Mutual Funds?
A loan against mutual funds allows you to access funds by pledging your mutual fund units as collateral, without selling them. Offered by banks and NBFCs, these loans are based on the value of your mutual fund units.

How it Works:

1. Lien Marking: Your mutual fund units are marked with a lien in favor of the lender, allowing you to benefit from dividends while securing the loan.
2. Loan Value: Typically, banks offer up to 50% of the NAV for equity mutual funds and up to 80% for debt mutual funds.
3. Interest Rates: Interest rates are lower than personal loans, usually between 10% and 12%, charged on a pro-rata basis.

Benefits:

• Retain your mutual fund units and continue your SIPs.
• Quick approval and disbursement.
• No prepayment charges.
• Lower interest rates compared to personal loans.
• Flexible repayment with no EMI system.

When to Apply:
Consider a Loan Against Mutual Funds during financial emergencies to avoid liquidating investments. It's especially beneficial during market downturns to prevent losses from selling at a low price.

How to Apply:
For example, DhanLAP powered by Ark Neo Finance provides loans within 15 minutes with a seamless, paperless process. Sign up, share your details, submit your mutual fund portfolio statement, and select the investments for lien marking.

Closure:
Repay the loan in full to remove the lien and regain full access to your mutual fund units. In case of non-repayment, the lender will redeem the units to cover the outstanding dues.

Conclusion:
Loan Against Mutual Funds offers a lower interest rate and quick access to funds without liquidating your investments. Evaluate your financial needs and repayment plans carefully before availing this option.

About us:

DhanLAP, revolutionizes the way you access funds against your mutual fund investments. With a commitment to providing a seamless and efficient borrowing experience, DhanLAP ensures quick approval, minimal paperwork, and robust data security.

For more information about loan against mutual funds: https://dhanlap.com/loan-against-mutual-funds