LOAN AGAINST MUTUAL FUNDS
There are times in life when you could encounter unanticipated financial difficulties, such as medical emergencies, family bills, etc. There is frequently a pressing need for cash or use your savings in such circumstances. Even in these circumstances, there are better lending alternatives. One option is to take out a loan against your mutual funds.
You can avoid cashing out or redeeming your investments by obtaining a loan against mutual funds. Loans secured by securities allow you to raise the money you need swiftly. Depending on the length of the loan, interest is assessed on the amount used. Depending on the bank and tenure, interest rates on loans secured by mutual funds will range from 7 to 15% per year. You may get loan against mutual funds from banks and NBFCs in India.