Mutual fund investments are subject to market risk. Therefore, never invest the money that you may need during the Emergency. Invest only the money that you can leave for a long time. Also, the easiest way to invest in the stock market is to invest in mutual funds. Do you know that you can also take a loan on the amount invested in mutual funds. Banks and many NBFC companies give loans on the money invested in mutual funds. Along with this, we are telling you in our news that how can you take a loan in lieu of mutual funds.

How to get loan
You can take a loan from a bank or NBFC (Non-Banking Financial Company) in exchange for a mutual fund unit. To take a loan in lieu of the same mutual fund, you have to enter into a loan agreement with the financier (lender), meaning you may have to mortgage your unit. In addition, the financier can then request the mutual fund registrar (CAMS, Karvy, Sundaram or Franklin) to mark the lin on the units of the mutual fund against which the loan is to be given. This means that the units cannot be redeemed until the loan is repaid. The same bank or NBFC will give you a loan for a fixed period which you will also have to repay in the same period.

What will be the loan amount
For your information, let us tell you that the amount received as a loan is always less than the market value of your mutual fund unit. This is called margin. The loan amount depends entirely on the financier, but it can be from 10 to 12 percent so that the money can be kept safe. The same has been seen many times that investors require immediate money for a short period such as three months. In the same way, he can fulfill his needs by taking loan by mortgaging his mutual fund unit. If you take a loan on an equity mutual fund, the interest (interest) on it is less than that of a personal loan. They can get loan from Indian resident, partnership firm, private trust, private limited company or public limited company.

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