Anagh Pal15 Mar 2024, 10:25
When in need of money, especially at short notice, a personal finance loan is one option. However, being an unsecured loan, personal loans come with high rates of interest. But if you own mutual funds, you can get a loan against mutual funds at a lower rate of interest. However, there are a few things one should consider.The concept of loan against mutual funds operates by leveraging your mutual fund portfolio. For instance, if you hold a portfolio valued at approximately ₹1 crore, you have the option to obtain a short or long-term loan of around ₹50-80 lakhs against it. These loans typically have a duration of one year but can be renewed annually.