Loan Against Mutual Funds
Need money for a short-term requirement? Instead of redeeming your mutual funds, you can pledge them and borrow against their value - while they stay invested.
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GrokAccess funds without breaking your investments
Redeeming investments in an emergency can interrupt compounding and trigger capital-gains tax. A loan against mutual funds lets you pledge (lien-mark) your units with a lender and borrow a portion of their value, often as an overdraft where interest is charged only on the amount you actually use. Your units remain invested and continue to earn returns.
Liquidity without liquidation
Your long-term plan stays intact while your short-term need is met.
- Pledge equity or debt fund units
- Overdraft facility - pay interest on usage
- Quick digital lien-marking process
Why it's worth it
From your first conversation to ongoing service, everything is built around your needs.
Stay invested
Units continue to grow while pledged.
No capital-gains trigger
Avoid tax that a redemption might create.
Flexible repayment
Repay and re-draw within your sanctioned limit.
Lower cost than unsecured loans
Secured borrowing is often cheaper than personal loans or credit cards.
Simple, transparent, personal
We listen first and understand completely before suggesting anything.
- 1Understand your goals, family situation, time horizon and comfort with risk
- 2Shortlist relevant options as incidental advice and explain them in plain language - costs, risks and all
- 3Take care of KYC, forms and documentation so getting started is hassle-free
- 4Review regularly and stay a phone call away whenever life changes
Frequently asked questions
Quick answers about loan against mutual funds. Still have a question? We're happy to help.
How much can I borrow against my mutual funds?
Lenders typically offer a percentage of the current value - higher for debt funds and lower for equity funds. The exact loan-to-value ratio depends on the lender and scheme.
Do my units keep earning returns?
Yes. Pledged units remain invested in your name and continue to participate in market movements, including dividends where applicable.
What if the value of my units falls?
If the value drops sharply, the lender may ask you to pledge more units or repay part of the loan to restore the required margin.
Can I redeem pledged units?
Not while they are under lien. You need to repay the loan or get the lien released for those units first.
Who provides the loan?
Banks and NBFCs provide the loan and decide on sanction, interest rate and terms. We help you understand the options and complete the process.
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Loans are sanctioned solely at the discretion of the lending institution, subject to its credit assessment, terms and applicable charges. Pledged mutual fund units remain subject to market risks, and a fall in their value may require additional security or repayment.
Need help choosing the right option?
Talk to us - we'll understand your needs and explain your options in plain language.