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Loan Against Mutual Funds

Mutual funds are designed to help investors build long-term wealth. However, selling investments to meet short-term liquidity needs may interrupt financial goals and trigger unnecessary tax implications. Loan Against Mutual Funds (LAMF) enables eligible investors to access funds against approved mutual fund holdings while allowing the investment portfolio to remain invested.

Terkar Capital's LAS Division assists business owners, professionals, HNIs and investors in evaluating eligible mutual fund portfolios and structuring funding solutions through its network of lending institutions.

 *Built for structured lending, not retail lending.

Why Consider Loan Against Mutual Funds?

Instead of redeeming your investments, eligible mutual fund units can be pledged to obtain a loan or overdraft facility, subject to lender approval. This enables investors to address temporary liquidity requirements while continuing to participate in the long-term growth potential of their investments.

Whether the requirement is business expansion, working capital, tax payments or bridge funding, leveraging existing investments may provide a more efficient alternative than liquidation.

Typical Loan-to-Value (LTV)

Mutual Fund Category

Debt Mutual Funds

Equity Mutual Funds

Hybrid Mutual Funds

Typical LTV*

Up to 80–85%

Up to 50%

Up to 60%

*Actual LTV depends on the lender's approved list, scheme category, portfolio composition and prevailing lending policies.

Trusted Loan Against Securities Solutions

At Terkar Capital, we help individuals, professionals, and businesses unlock liquidity through secure and customized lending solutions backed by a smooth, hassle-free process.

Mutual Fund Categories We Work With

Debt Mutual Funds

Debt-oriented schemes generally receive higher lending limits because of their comparatively stable valuation and lower market volatility.

Typical eligible categories include:

  • Liquid Funds

  • Overnight Funds

  • Corporate Bond Funds

  • Banking & PSU Debt Funds

  • Gilt Funds

  • Money Market Funds

  • Ultra Short Duration Funds

Explore → Loan Against Debt Mutual Funds

Equity & Hybrid Mutual Funds

Eligible equity and hybrid schemes may also be considered for funding, subject to institutional approval.

Common categories include:

  • Large Cap Funds

  • Flexi Cap Funds

  • Multi Cap Funds

  • Index Funds

  • ETFs

  • Balanced Advantage Funds

  • Aggressive Hybrid Funds

Explore → Loan Against Equity & Hybrid Mutual Funds

How We Evaluate Mutual Fund Portfolios

Every lender follows its own approved scheme list and underwriting framework. Rather than focusing only on the Asset Management Company (AMC), portfolio evaluation generally considers multiple parameters, including:

  • Mutual fund category

  • Scheme eligibility

  • Portfolio value

  • Asset allocation

  • Liquidity profile

  • NAV stability

  • Portfolio concentration

  • Institutional acceptance

  • Lender-specific policies

Terkar Capital assists clients in reviewing these factors before identifying suitable lending options.

Leading AMCs We Commonly Evaluate

We regularly assist clients with portfolios invested across leading AMFI-registered Asset Management Companies, including:

  • SBI Mutual Fund

  • HDFC Mutual Fund

  • ICICI Prudential Mutual Fund

  • Nippon India Mutual Fund

  • Kotak Mutual Fund

  • Axis Mutual Fund

  • DSP Mutual Fund

  • Mirae Asset Mutual Fund

  • Aditya Birla Sun Life Mutual Fund

  • Franklin Templeton Mutual Fund

  • Tata Mutual Fund

  • UTI Mutual Fund

  • Bandhan Mutual Fund

  • WhiteOak Capital Mutual Fund

Portfolio eligibility depends on the individual scheme and lender's approved list rather than the AMC alone.

Unlock the Value of Your Equity Portfolio

Need funds without selling your shares? Get a Loan Against Equity Shares with quick processing, competitive interest rates, and flexible repayment options while your investments remain intact.

Common Use Cases

  • Working Capital

  • Business Expansion

  • Tax Payments

  • Promoter Liquidity

  • Investment Opportunities

  • Bridge Finance

  • Treasury Management

Documents Generally Required

  • PAN Card

  • Aadhaar Card

  • Consolidated Account Statement (CAS)

  • Latest Portfolio Statement

  • Bank Statement

  • KYC Documents

  • Income Proof (where applicable)

Related Pages

Why Terkar Capital's LAS Division?

Terkar Capital is an investment banking and debt consultancy firm that assists clients in evaluating portfolio eligibility, identifying suitable lending institutions, structuring financing solutions and managing the complete execution process. Rather than acting as a lender, we work alongside clients to help structure efficient liquidity solutions aligned with their financial objectives.

Unlock the Value of Your Equity Portfolio

Need funds without selling your shares? Get a Loan Against Equity Shares with quick processing, competitive interest rates, and flexible repayment options while your investments remain intact.

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