Personal Loan Vs Loan Against Mutual Funds
Many people take a personal loan when they need funds urgently.
But if you already have mutual fund investments, there’s a smarter option — Loan Against Mutual Funds (LAMF).
Let’s compare both options and understand which one is better.
COMPARISON TABLE
Feature | Personal Loan | Loan Against Mutual Funds |
Interest Rate | 12% – 24% | Starting ~10.5% |
Processing | Moderate | 100% Digital |
Approval Time | 1–3 days | Minutes |
Pre-closure Charges | High Pre closure charges | Zero |
Tax Impact | NA | No capital gains tax |
Flexibility | Fixed EMI | Pay as you use |
🔹 Understanding Loan Against Mutual Funds
A Loan Against Mutual Funds enables you to borrow funds by pledging your mutual fund units. This means:
You retain ownership of your investments
Your investments continue to appreciate in value
🔹 BENEFITS OF LOAN AGAINST MUTUAL FUNDS
Get funds without selling investments
Continue earning returns
Quick digital process
Interest charged only on amount used
No impact on long-term wealth creation
🔹 Why Choose Fundpeloan?
With Fundpeloan, you can benefit from:
Instant digital loan approvals
Rapid processing times
Funds disbursed within hours
Competitive interest rates
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