Taking a loan against mutual funds provides a quick way to meet your financial requirements while retaining your investment. This facility not only helps in maintaining the growth potential of your investments but also offers attractive loan terms, making it a flexible and efficient borrowing solution.
Types of Loan Against Mutual Funds:
Loan Against Equity Mutual Funds:
- Provides funding against the units of equity mutual funds, generally offering a higher loan-to-value ratio due to the higher risk associated with equity investments.
Loan Against Debt Mutual Funds:
- Offers loans secured by debt mutual funds, typically at a lower interest rate due to their lower risk profile.
Loan Against Hybrid Mutual Funds:
- Combines features of both equity and debt, providing a balanced option for borrowing against hybrid mutual funds.
Features of Loan Against Mutual Funds:
Quick Access to Funds:
- Provides immediate liquidity without the waiting period associated with traditional loans.
Retain Ownership:
- You continue to own your mutual fund units, allowing you to benefit from any potential appreciation in their value.
Flexible Loan Amounts:
- The loan amount is typically based on the value of your mutual fund investments, offering flexibility according to your financial needs.
Competitive Interest Rates:
- Generally, lower interest rates compared to personal loans due to the secured nature of the loan.
Tax Benefits:
- Interest paid on loans against mutual funds may be tax-deductible, providing additional financial advantages.
Esdee Finmart offers loan against mutual funds as a convenient and effective way to meet your financial requirements without compromising your investments. With quick access to funds and attractive loan terms, you can unlock liquidity while keeping your mutual funds intact.
