Do you know that you can also take a loan on the amount invested in mutual funds? Banks and many NBFCs companies give loans to money invested in mutual funds.
Mutual funds are subject to market risk. So, never invest the money you need at the time of emergency. Invest only the money you can leave for a long time. The simplest way to invest in the stock market is to invest in mutual funds. Do you know that you can also take a loan on the amount invested in mutual funds? Banks and many NBFCs companies give loans to money invested in mutual funds. We are telling you in our news how you can take a loan in lieu of mutual funds.
Who is eligible for a loan from Mutual funds:
Indian resident, partnership firm, a private trust, private limited company, or public limited company.
What will be the loan amount:
Let me notify you that the loan amount in the form of a loan is always less than the market value of your mutual fund unit. This is called margin. The loan amount depends entirely on the financier, but it can be up to 10 to 12 percent so that the money can be preserved. It has been observed many times that investors need immediate money for three months for a short period of time. They can take a pledge loan to their mutual fund unit and meet their needs. If you take a loan on equity mutual funds, the interest on it is less than the personal loan.
How to get a loan:
You can take a loan from the bank or the NBFCs (non-banking financial company) in lieu of mutual fund unit. To borrow against mutual funds, you have to register into a loan agreement with the financier( lender), meaning you have to mortgage your unit. The financier will then request the Mutual Fund Registrar (CAMS, Karvy, Sundaram, or Franklin Templeton Investments) to mark lin on the units of mutual funds in place of which the loan is to be given. This means that unless the loan is refunded, the units cannot be redeemed. The bank or NBFCs will give you a loan for a certain period, which you will also have to return within the same period.
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