Loan against mutual funds
Borrow against the mutual funds you hold without selling them: what it costs, how much you can get on equity and debt funds, and the risks.
Last verified 2026-10-21 · how we compare
See how much you can borrow against your funds
Check your limit with Volt MoneyVia our referral partner. We may earn a commission.Volt Money arranges loans from DSP Finance, Tata Capital and Bajaj Finance. You'll enter your details (including PAN) on our partner's page to fetch your mutual funds; the lender decides your limit and rate. CreditParakh is not a bank or lender and doesn't guarantee approval. Approval is at the bank's or lender's discretion.
Volt Money: loan against mutual funds at a glance
- Interest rate
- 9% to 12% a year, on the amount drawn
- How much (LTV)
- Equity 45% · debt 85%
- Credit limit
- ₹10,000 to ₹5 crore
- Processing fee
- From ₹999 + GST once
- Other charges
- As per the Key Facts Statement
- Closing early
- None (Volt says zero foreclosure charges)
- How it works
- A credit line: draw what you need, repay any time; interest only on the amount drawn, collected monthly
- Eligible funds
- Mutual funds held with CAMS or KFintech; ELSS only after its 3-year lock-in; units stay invested
- Who can apply
- Residents 18–70; no income proof or minimum credit score
- Speed
- About 10 minutes from eligibility check to money, by Volt's own claim
- Lenders
- DSP Finance, Tata Capital and Bajaj Finance
From Volt Money's own pages (voltmoney.in/check-loan-eligibility-against-mutual-funds), read 2026-10-21. Its pages quote different rates in different places, so we show the full published range; your Key Facts Statement has the exact rate, APR and charges.
Check your limit with Volt MoneyVia our referral partner. We may earn a commission.Loan against mutual funds calculator
Your limit from the funds you hold, and what drawing an amount costs against a personal loan of the same size.
- Credit limit against your funds
- ₹3,95,000
- Interest a month on ₹2,00,000 drawn
- ₹1,750
- Interest if repaid over 6 months
- ₹6,169
- Same amount as a personal loan at 14% over 6 months
- EMI ₹34,708, interest ₹8,246
A credit line charges interest only on what's drawn and you repay when you choose; both totals assume equal monthly repayments, like an EMI. Fees, GST and stamp duty are extra; the lender's Key Facts Statement gives the exact cost. If fund values fall, your limit falls too.
Loan against mutual funds vs personal loan vs redeeming
| Option | Loan against funds | Personal loan | Redeem the funds |
|---|---|---|---|
| Cost | Interest on what you draw (Volt Money: 9% to 12%), plus fees | Interest on the full amount (often 10%–36%), plus fee and GST | No interest; possible exit load and capital gains tax |
| Repayment | Any time; no fixed EMI | Fixed EMIs | Nothing to repay |
| Your investments | Stay invested | Untouched | Sold; future returns lost |
| Credit check | Light; secured by your funds | Full check of score and income | None |
| Main risk | Market fall: repay part or pledge more | Missed EMIs hurt your score | Selling at a bad time |
No funds to pledge? Compare personal loans and their true cost.
What RBI allows
- NBFCs (such as DSP Finance, Tata Capital and Bajaj Finance): 50% LTV at all times on shares and equity-oriented fund units; for purely debt funds each NBFC sets its own limit.
- Banks (from 1 July 2026): up to 75% of the value of equity and other non-debt fund units and up to 85% of debt fund units, with loans against non-debt securities capped at ₹1 crore per person across banks.
- Funds are valued conservatively, and a shortfall must be made good quickly, within seven working days at the latest.
Sources: RBI (NBFC – Credit Facilities) Directions, 2025, para 106; RBI FAQs on NBFCs, Q61; RBI (Commercial Banks – Credit Facilities) Amendment Directions, 2026, dated 30 March 2026.
Related
- True Cost of a Personal Loan: Fees and APRWhat a personal loan really costs: flat vs reducing rate, processing fee and GST, APR in the Key Fact Statement, foreclosure and penal charges.
- Personal loans comparedIf you have no funds to pledge
- Personal loans for a low CIBIL scoreWho lends at 650 or below
- EMI calculatorFor a loan with fixed EMIs
Questions people ask
What is a loan against mutual funds?
You pledge (lien-mark) mutual fund units you already hold and get a credit line against them. The units stay invested and keep earning; you pay interest only on the amount you draw, and you can repay whenever you like. If you don't repay, the lender can redeem the pledged units.
How much can I borrow against my mutual funds?
A share of the fund value called the loan-to-value (LTV). Volt Money publishes up to 45% of equity funds and up to 85% of debt and liquid funds. RBI caps NBFCs at 50% on equity-oriented funds; banks may go up to 75% on equity funds and 85% on debt funds from 1 July 2026.
What is Volt Money's interest rate on a loan against mutual funds?
Volt Money publishes 9% to 12% a year, charged only on the amount you draw. The lender (DSP Finance, Tata Capital and Bajaj Finance) sets your exact rate, and the Key Facts Statement you get before signing shows it with the APR, which includes fees.
What happens if the market falls after I take the loan?
Your fund value falls, so your limit falls. If what you owe is more than the new limit, the lender asks you to repay part of it or pledge more units, usually within a few days (RBI requires a shortfall to be fixed within seven working days). If you don't, it can redeem pledged units to cover the gap.
Is a loan against mutual funds better than a personal loan?
Usually cheaper, because it's secured: rates start around 9% against roughly 10% to 36% for personal loans, there's no fixed EMI, and you pay interest only on what you use. It needs funds to pledge, carries the margin-call risk above, and the amount is capped by your fund value. A personal loan needs no collateral but costs more.
Should I borrow against my funds or redeem them?
Redeeming costs nothing in interest but can trigger capital gains tax and exit loads, and you lose future returns. For a short-term need you can repay within months, a credit line against the funds often costs less overall; for a permanent need, redeeming is simpler. Use the calculator to see the interest.
CreditParakh is not a bank or lender and doesn't guarantee approval. Approval is at the bank's or lender's discretion.