Loan Against Mutual Funds (LAMF) is a smart financial tool that lets you borrow cash by pledging your existing mutual fund holdings as collateral, without liquidating them. This means you can meet urgent monetary needs while your investments stay invested and continue to grow.
Here are the top apps and platforms in India where you can avail LAMF digitally.
First, let’s quickly understand what a LAMF is:
A Loan Against Mutual Funds (LAMF) is a secured credit facility where you pledge your mutual fund units as collateral and receive a loan or line of credit. This means:
- You continue earning returns on your mutual funds.
- You avoid capital gains tax that arises from redeeming units.
LAMF is typically set up as an overdraft or line of credit; you pay interest only on the amount you actually withdraw, not on the full sanctioned limit.
Best Apps for Loan Against Mutual Funds
Groww Credit
Groww Credit’s Loan Against Mutual Funds is a fully digital, flexible borrowing solution that lets investors get liquidity from their mutual fund holdings without selling them.
With this facility, you can pledge eligible mutual funds and create a credit line up to ₹15 crore (subject to the value and type of your holdings), allowing you access to funds for your instant needs.
One of the key features is that interest is charged only on the amount you withdraw and only for the number of days you use it, rather than on the entire approved credit limit. The process is 100% digital and quick, with mutual fund selection, pledge creation, video KYC, and bank mandate setup handled within the Groww Credit app itself.
FinEzzy
FinEzzy provides instant loans against mutual funds with minimal documentation requirements. It caters to individuals looking for quick liquidity solutions and offers a straightforward online application process.
Once the mutual funds are pledged, the loan amount is sanctioned based on the eligible value of the holdings. The platform focuses on ease of use and competitive rates, making it a practical option for those who want fast approval without complex paperwork.
PhonePe (Integrated LAMF Feature)
PhonePe has introduced a Loan Against Mutual Funds feature within its app, enabling users to borrow against their investments without leaving the ecosystem. Since many users already invest in mutual funds via PhonePe, the integration makes the borrowing process seamless.
The partnership with regulated financial institutions ensures secure lending, while the familiar app interface simplifies pledge creation, loan tracking, and repayment management. This option is particularly convenient for users who prefer handling all financial activities within one app.
Quicklend
Quicklend is another platform offering loans against mutual funds and other securities. It emphasises speed and simplicity, with quick credit assessments and fast disbursal timelines. Borrowers can pledge their investments without selling them, ensuring they continue to participate in market gains.
Quicklend is often preferred by users who need urgent funds and want minimal friction in the application process. Its digital workflow helps reduce turnaround time compared to traditional bank loans.
INDmoney (INsta Plus)
INDmoney offers Loan Against Mutual Funds under its INsta Plus feature, allowing investors to unlock liquidity without disturbing their long-term financial plans. The entire process is digital, and funds are often disbursed within hours of pledge confirmation. The platform supports relatively high loan limits, making it suitable for both personal and business funding needs.
Borrowers benefit from flexible repayment structures, including the ability to prepay without heavy penalties. Since INDmoney also tracks investments across platforms, users get a consolidated view of their pledged and unpledged assets.
Volt Money
Volt Money is a digital-first financial app offering fast loans against mutual funds with flexible repayment options. Its fully paperless process and eligibility checks make getting a loan quick and convenient.
Volt Money partners with regulated lenders, ensuring compliance and security while offering a simple and transparent borrowing experience. It is known for quick processing and flexible repayment options, allowing borrowers to withdraw funds as needed within their approved limit.
Conclusion
Whether you’re a seasoned investor or just want a smarter way to manage cash needs without selling investments, these apps make loans against mutual funds easy, digital, and accessible. With the growing digitisation of financial services in India, accessing liquidity through your mutual fund investments has never been easier. Choosing the right app depends on your portfolio size, urgency of funds, and comfort with the platform you already use.
