Loan Against Mutual Funds (LAMF) Calculator

Portfolio Portfolio

Equity Mutual Funds Value (50% LTV)

₹

Debt Mutual Funds Value (80% LTV)

₹

Amount You Wish to Withdraw

₹

Overdraft Interest Rate (p.a.)

Why Loan Against Mutual Funds is Better Than Personal Loans

A Personal Loan incurs 14%–20% interest with mandatory fixed monthly EMIs. A Loan Against Mutual Funds (LAMF) offers a credit line at 9.5%–11.5% where you pay interest only on what you withdraw, while your mutual funds continue compounding.

Feature	Loan Against Mutual Funds (LAMF)	Personal Loan
Interest Rate Range	9.5% - 11.5% p.a.	13.0% - 21.0% p.a.
Interest Charged On	Utilized Amount Only	Total Sanctioned Principal
Investment Growth	Continues Compounding (NAV)	N/A (Liquidated Capital)

Key Advantages of Loan Against Mutual Funds (LAMF)

Avoid Compulsory Equity Liquidation: Raise emergency cash without redeeming your mutual fund units, preserving long-term SIP compounding and avoiding capital gains tax.
Low Interest Rates (9-10.5%): Significantly cheaper than personal loans (13-18%) or credit cards (36-42%) because loan is backed by pledged liquid assets.

LTV Limits (Equity vs Debt Funds)

Equity Mutual Funds LTV: RBI allows up to 50% Loan-to-Value (LTV) on equity mutual fund holdings.
Debt Mutual Funds LTV: Banks offer up to 80-85% LTV on debt funds due to lower asset volatility.

LAMF Overdraft Smart Hack

Set up a digital LAMF overdraft line. You pay interest ONLY on the exact amount withdrawn for the exact number of days used, with zero prepayment penalty!

Frequently Asked Questions

What is Loan Against Mutual Funds (LAMF)?

LAMF is a credit limit or overdraft facility granted by pledging your mutual fund units as collateral without redeeming them, allowing your funds to continue earning returns.

What is the Loan-to-Value (LTV) ratio for Equity and Debt MFs?

Banks typically grant up to 50% LTV on Equity Mutual Funds and up to 80% LTV on Debt Mutual Funds.

Do I have to pay interest on the total approved limit?

No, LAMF works as an overdraft. Interest is calculated on a daily basis strictly on the amount utilized, not on the total sanctioned limit.

Do my mutual fund investments continue to grow while pledged?

Yes, your mutual fund units remain invested in the market, earning NAV capital appreciation and dividends even while pledged.

What are the interest rates for LAMF in 2026?

LAMF interest rates are significantly lower than personal loans, usually ranging between 9.5% and 11.5% p.a.

Are there prepayment or foreclosure charges on LAMF?

Most banks charge zero prepayment or foreclosure penalty on overdraft loan against mutual funds.

What happens if mutual fund NAV falls sharply?

If the market drops and your LTV breaches permissible limits, the bank will request you to pledge additional units or repay part of the loan to maintain required margin.

How quickly is a loan against mutual funds disbursed?

Digital LAMF applications via CAMS / KFintech Lien Marking are disbursed within 2 to 4 hours directly into your bank account.

Loan Against Mutual Funds Calculator (2026)