LAS (Loan Against Mutual Fund)

At InvestmentVala, we understand that financial needs can arise anytime – whether it’s for business expansion, medical emergencies, education, or short-term cash flow. In such situations, selling your long-term investments may not be the best option. This is where LAS (Loan Against Mutual Fund) becomes a smart and efficient solution.

Loan Against Mutual Fund allows you to borrow money by pledging your existing mutual fund units as collateral, without redeeming them. This way, you get instant liquidity while your investments continue to remain invested and have the potential to grow.

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What is Loan Against Mutual Fund (LAS)?

LAS is a facility where banks or financial institutions provide a loan by keeping your mutual fund investments as security. Instead of selling your units and breaking your long-term investment plan, you can use them to raise funds temporarily.

You retain ownership of your mutual funds, and once the loan is repaid, the lien on your units is removed.

Key Features of LAS
1

Instant Liquidity

Get quick access to funds without selling your investments.

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2

Lower Interest Rates

LAS generally offers lower interest rates compared to personal loans or credit cards.

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3

No Impact on Investments

Your mutual funds stay invested and continue to participate in market growth.

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4

Flexible Usage

Loan amount can be used for any personal or business purpose.

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5

Faster Processing

Minimal documentation and quicker approval process.

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6

No Credit Score Pressure

Since the loan is secured, credit score impact is lower.

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