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What is Loan Against Mutual Funds Explained about?
A loan against mutual funds allows investors to borrow funds by pledging their mutual fund units as collateral without liquidating their investments, with varying Loan-to-Value (LTV) ratios depending on the type of mutual fund. Equity mutual funds typically have an LTV ratio of 50-70%, while debt mutual funds can reach up to 80-90%. The process involves application, lien marking, disbursal, repayment, and lien removal, but borrowers must be cautious of market volatility and interest obligations that could l
- Author
- Muslam
- Language
- EN