Asset Backed Lending

Loan Against Mutual Funds (LAMF)

Never sell your compounding assets. Calculate your instant overdraft limit by pledging your equity and debt mutual funds digitally via CAMS/KFintech.

Your MF Portfolio Value

Bank LTV is capped at 45-50% due to volatility.

Bank LTV is 75-80% due to stable returns.

Typically ranges from 9% to 11% p.a.

Overdraft Limit

Approved Limit

₹4,50,000

You pay zero interest until you withdraw.

Cost of Withdrawal

Utilized Amount₹2,00,000
Monthly Interest Due₹1,583

You do NOT pay principal EMIs. Just clear the monthly interest.

Why Smart Investors Never Sell Mutual Funds

  • Avoiding Capital Gains Tax: If you sell your equity MFs to raise emergency cash, you will pay 12.5% Long Term Capital Gains (LTCG) tax, or 20% Short Term Capital Gains (STCG) tax. Taking a loan against them avoids this tax event completely.
  • Letting the Magic of Compounding Continue: While you pay 9-10% interest on your loan, your underlying mutual fund is likely still compounding at 12-15%. You effectively borrow at a negative real cost.
  • Overdraft Structure: LAMF is not a traditional loan with fixed EMIs. It acts like an Overdraft bank account. If you get a ₹5 Lakh limit but only withdraw ₹1 Lakh for 10 days, you only pay interest on ₹1 Lakh for exactly 10 days. The rest of the limit remains free. You do not have to pay back the principal until the end of the loan tenure (usually 1 year, auto-renewed).