Loan Against Mutual Fund
Unlock Liquidity with Your Investments
Introduction
A Loan Against Mutual Fund allows investors to leverage their mutual fund investments to obtain instant liquidity without liquidating their assets. This financial solution provides a seamless way to access funds for urgent needs while continuing to benefit from potential market growth.
Product Description
This service enables individuals to borrow a certain percentage of their mutual fund's market value. It offers an excellent alternative for those who need quick access to funds without incurring tax liabilities or losing potential returns on their investments.
Features
- Quick Processing
- Fast approval and disbursal of funds to meet urgent financial requirements.
- Competitive Interest Rates
- Lower rates compared to personal loans, making it an economical choice.
- Flexible Tenure
- Choose a repayment period that suits your financial situation.
- No Prepayment Penalty
- Offers flexibility to repay the loan early without additional charges.
- Maintain Investment Growth
- Continue to enjoy the benefits of mutual fund growth while accessing funds.
Types of Loan Against Mutual Fund
- Term Loans
- Fixed tenure with set monthly installments.
- Ideal for specific financial needs like education or home renovations.
- Overdraft Facility
- Flexible borrowing against mutual fund investments.
- Pay interest only on the amount utilized, making it cost-effective.
- EMI-based Loans
- Equated Monthly Installments for easier repayment.
- Helps in managing cash flow effectively.
Choosing a Loan Against Mutual Fund from Flavr Finserv empowers you to meet your financial goals without compromising your investments. With our streamlined process and expert guidance, you can unlock the potential of your mutual funds today.
Cash against your mutual funds in 4 easy steps
Frequently Asked Questions
What is Loan Against Mutual Funds?
A Loan Against Mutual Funds allows you to borrow money by using your mutual fund investments as collateral, giving you access to funds without selling your investments.
What is the credit limit and how is it calculated?
The credit limit is generally a percentage of the current market value of your mutual fund investments. It varies based on the type of mutual fund and lender policies.
What is the tenure of the loan against mutual funds?
The tenure can vary based on the lender, typically ranging from 6 months to 5 years, depending on your repayment capability and loan amount.
What will my monthly payments look like?
Monthly payments will depend on the loan amount, interest rate, and tenure. They are generally calculated as Equated Monthly Installments (EMIs).
Which mutual funds are accepted for availing a loan against mutual funds?
Most lenders accept equity and debt mutual funds, but the acceptance may vary based on the lender's policies.
What is the process for availing a loan against mutual funds?
The process usually involves submitting your mutual fund details, filling out an application form, and providing necessary documents for verification. Once approved, funds are disbursed quickly.
How much loan can I get?
The loan amount can typically range from 50% to 80% of your mutual fund's market value, depending on the lender and type of mutual funds.