Apply Online for a Loan Against Mutual Fund Units – Quick, Easy, and Convenient

In today’s fast-paced world, financial emergencies or opportunities can arise anytime. If you have investments in mutual funds but don’t want to sell them to raise funds, there’s a smart solution: apply online for a loan against your mutual fund units.

This digital borrowing option allows you to unlock the value of your investments quickly, without exiting your portfolio. Here’s everything you need to know about the process, benefits, and how to get started online.

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What Is a Loan Against Mutual Fund Units?

A loan against mutual fund units is a secured loan where you pledge your mutual fund holdings as collateral to get instant funds. Instead of redeeming your units, you borrow money while your investments continue to stay invested and earn returns.

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Why Apply Online for a Loan Against Mutual Funds?

The digital revolution has made borrowing faster and more convenient than ever. Here’s why applying online is the best option:

• Instant Application: Submit your loan application from the comfort of your home or office.

• Faster Processing: Digital KYC and e-verification speed up approval times.

• Minimal Documentation: Upload documents online without physical visits.

• Real-Time Updates: Track application status instantly through the lender’s portal.

• Flexible Repayment Options: Choose EMIs or bullet repayment as per your convenience.

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Step-by-Step Guide to Apply Online for a Loan Against Mutual Funds

1. Choose a Trusted Lender

Select banks or NBFCs that offer loan against mutual funds with good interest rates and customer service. Some popular lenders include HDFC Bank, ICICI Bank, Bajaj Finserv, and Axis Bank.

2. Visit the Lender’s Website or App

Most lenders provide an online portal or mobile app for loan applications. Navigate to the Loan Against Mutual Funds section.

3. Fill in the Application Form

Provide basic details like your name, contact, PAN, and mutual fund investment details. Some lenders may ask for your Demat account number or mutual fund folio number.

4. Upload Documents

Scan and upload your KYC documents, mutual fund statements, bank account details, and a passport-size photo.

5. Authorize Pledge of Mutual Fund Units

You will need to digitally authorize the lien on your mutual fund units, ensuring they cannot be sold during the loan tenure.

6. Wait for Approval

Lenders typically verify your documents and creditworthiness within 24 to 72 hours. Some offer instant approval if you meet eligibility criteria.

7. Receive Funds

Once approved, the loan amount is disbursed directly to your bank account.

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Benefits of Applying Online

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Who Can Apply for a Loan Against Mutual Funds?

• Individuals with mutual fund investments (equity, debt, hybrid)

• Business owners holding mutual funds in company accounts

• NRIs with Indian mutual fund holdings (subject to lender policies)

• Age generally between 21 and 65 years

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Important Points to Remember

• Loan amount is based on the current market value (NAV) of your pledged units.

• The loan-to-value ratio is usually 50% to 70%.

• Interest rates are lower than unsecured loans because it is a secured facility.

• If the NAV falls, you may need to top up collateral or repay part of the loan.

• Loan tenure typically ranges from 12 to 36 months.

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Final Thoughts

Applying online for a loan against mutual fund units is a smart way to get immediate liquidity without disturbing your investment strategy. It’s fast, hassle-free, and designed to meet both personal and business financial needs.

If you have mutual fund investments and need funds, consider this digital borrowing option today. Simply pick a lender, apply online on Swiploan, and get the cash you need—without selling your valuable mutual fund units!