{"id":6651,"date":"2026-05-07T10:38:53","date_gmt":"2026-05-07T10:38:53","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6651"},"modified":"2026-05-07T10:38:53","modified_gmt":"2026-05-07T10:38:53","slug":"loan-against-mutual-funds-funds-without-selling-investments","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/loan-against-mutual-funds-funds-without-selling-investments\/","title":{"rendered":"Loan Against Mutual Funds: Quick Funds Without Breaking Investments"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You never really plan for sudden financial needs. It could be a medical expense, a business opportunity, or even a temporary cash crunch. In such moments, your first instinct might be to withdraw from your savings or redeem your investments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what if most of your money is already invested in mutual funds?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Selling your investments may solve the short-term problem, but it can disrupt your long-term wealth creation journey. This is where a loan against <a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\"><span style=\"color: blue;\">mutual funds<\/span><\/a> becomes a smart alternative.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead of breaking your investments, you can borrow against mutual funds and access quick liquidity while staying invested. Let\u2019s understand how this works and why it is becoming a preferred choice for many investors in India.<\/span><\/p>\n<h2><b>What is a Loan Against Mutual Funds?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A loan against mutual funds is a type of secured loan where you pledge your mutual fund units as collateral to borrow money from a bank or NBFC.<\/span><\/p>\n<p><b>The lender places a lien on your mutual fund units. This means:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You still own your investments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You continue to earn potential returns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">But you cannot redeem or sell the units until the loan is repaid<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This type of mutual fund backed loan allows you to meet short-term financial needs without disturbing your investment goals.<\/span><\/p>\n<h2><b>How Does a Mutual Fund Loan Work?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The process of getting a loan on mutual funds in India is simple and mostly digital:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Check Eligibility: <\/b><span style=\"font-weight: 400;\">Ensure your mutual fund scheme is accepted by the lender.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Apply Online: <\/b><span style=\"font-weight: 400;\">Submit your application through the bank or lending platform.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lien Marking: <\/b><span style=\"font-weight: 400;\">The lender marks a lien on your mutual fund units via the registrar.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan Disbursement: <\/b><span style=\"font-weight: 400;\">Once approved, funds are credited to your account, often within 24 to 48 hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Repayment: <\/b><span style=\"font-weight: 400;\">You repay via EMIs or interest servicing, depending on the structure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lien Removal: <\/b><span style=\"font-weight: 400;\">After full repayment, the lien is removed and you regain full control.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This makes an instant loan against mutual funds one of the fastest ways to access funds.\u00a0<\/span><\/p>\n<h2><b>Eligibility Criteria for Loan Against Mutual Funds<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To apply for a mutual fund collateral loan, you generally need:<\/span><\/p>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 30%;\">Criteria<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Requirement<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Minimum Age<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Minimum 18 and above<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Maximum Age<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Typically 65 years (some lenders allow up to 70 years)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Residency<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Indian resident<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Ownership<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Mutual funds in your name or jointly held<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">KYC<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">PAN, Aadhaar, and bank account<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Fund Type<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Approved schemes by the lender<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"font-weight: 400;\">Joint holders can\u00a0 apply when all holders give consent.<\/span><\/p>\n<h2><b>Loan Amount and LTV Ratio<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The amount you can borrow depends on the Loan-to-Value (LTV) ratio.<\/span><\/p>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Fund Type<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Typical LTV Ratio<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Equity Mutual Funds<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Up to 60%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Debt Mutual Funds<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">70%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><b>For example:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you hold \u20b910 lakh in debt funds, you may get up to \u20b97\u20138 lakh depending on the lender<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you hold \u20b910 lakh in <a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/equity-funds\"><span style=\"color: blue;\">equity funds<\/span><\/a>, you may get around \u20b96 lakh (subject to lender caps and RBI limits)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This makes a secured loan on mutual funds flexible and accessible.<\/span><\/p>\n<h2><b>Benefits of Borrowing Against Mutual Funds<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stay Invested: <\/b><span style=\"font-weight: 400;\">You do not need to redeem your investments. Your long-term goals remain intact.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Quick Access to Funds: <\/b><span style=\"font-weight: 400;\">An instant loan against mutual funds can be processed within hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lower Interest Rates: <\/b><span style=\"font-weight: 400;\">Since this is a secured loan, interest rates are usually lower than personal loans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexible Repayment:<\/b><span style=\"font-weight: 400;\"> Flexible repayment options include overdraft facility, interest-only payments, or EMI-based repayment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No Capital Gains Tax: <\/b><span style=\"font-weight: 400;\">Since you are not selling your investments, there is no capital gains tax.<\/span><\/li>\n<\/ul>\n<p><b>Indicative Interest Rates (NEW):<\/b><span style=\"font-weight: 400;\"> Loan against mutual fund interest rates typically range from 8% to 12% per annum, depending on the lender, fund type, and your credit profile.<\/span><\/p>\n<h2><b>Key Costs to Consider<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While a mutual fund pledge loan is convenient, it is not completely free. Here are some costs:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest rates based on market conditions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processing fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Renewal or annual maintenance charges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Penalties for delayed payments<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even though it is cheaper than unsecured loans, you should compare lenders before applying.<\/span><\/p>\n<h2><b>Types of Mutual Funds Accepted<\/b><\/h2>\n<p><b>Most lenders accept:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equity mutual funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Debt mutual funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hybrid funds<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, some schemes may be excluded.<\/span><\/p>\n<p><b>Typically not eligible:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ELSS funds due to 3-year lock-in<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High-risk or sector-specific funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low-liquidity schemes<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Always check the approved list before applying for a loan against MF units.<\/span><\/p>\n<h2><b>Risks You Should Know<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A loan against mutual funds in India is useful, but it comes with certain risks.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market Fluctuation Risk:<\/b><span style=\"font-weight: 400;\"> Falling mutual fund values may trigger a margin call if the portfolio value drops significantly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Margin Calls:<\/b><span style=\"font-weight: 400;\"> You may need to partially repay the loan or pledge additional units to maintain the required LTV.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Default Risk: <\/b><span style=\"font-weight: 400;\">If you fail to repay, the lender can redeem your mutual fund units to recover dues.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Restricted Liquidity:<\/b><span style=\"font-weight: 400;\"> You cannot redeem or access pledged investments until the loan is fully repaid.<\/span><\/li>\n<\/ul>\n<h2><b>Overdraft Against Mutual Funds<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Some lenders offer an overdraft against mutual funds, which works like a credit line.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You are sanctioned a limit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You withdraw only what you need<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest is charged only on the utilised amount<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is ideal for managing short-term or recurring expenses.<\/span><\/p>\n<h2><b>Key Things to Check Before Applying<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Before you opt for a loan on mutual funds, review these carefully:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Eligibility Conditions: <\/b><span style=\"font-weight: 400;\">Ensure your funds and profile meet lender requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan Amount Limits: <\/b><span style=\"font-weight: 400;\">Different lenders have different minimum and maximum limits. [<\/span><b>Note:<\/b><span style=\"font-weight: 400;\"> The RBI cap of \u20b920 lakh for dematerialised securities for individual borrowers at banks]<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest Rates: <\/b><span style=\"font-weight: 400;\">Compare rates across banks and NBFCs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Charges: <\/b><span style=\"font-weight: 400;\">Check hidden costs like processing fees and penalties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Approved Fund List: <\/b><span style=\"font-weight: 400;\">Not all mutual funds are accepted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LTV Terms: <\/b><span style=\"font-weight: 400;\">Understand how much you can borrow and when margin calls may occur. Actual LTV offered depends on lender policy and fund type \u2014 not a single fixed number.<\/span><\/li>\n<\/ul>\n<h2><b>When Should You Consider This Option?<\/b><\/h2>\n<p><b>A mutual fund loan is best suited for:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Short-term financial needs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Emergency expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Temporary liquidity gaps<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoiding premature redemption<\/span><\/li>\n<\/ul>\n<p><b>It is not ideal for:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Long-term borrowing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Speculative investing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Funding risky ventures<\/span><\/li>\n<\/ul>\n<h2><b>Important Insights<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Here are a few lesser-known but important points:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your SIPs and lump sum investments continue as usual<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You retain ownership of your investments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest rates may vary based on your credit profile<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The process is mostly digital and hassle-free<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ELSS units become eligible for pledging once the 3-year lock-in period ends, at the lender&#8217;s discretion.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Also, remember: Just because you can get a loan without selling mutual funds, it does not mean you always should. Use this option wisely.<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A loan against mutual funds is a practical way to unlock liquidity without disturbing your investment journey. It allows you to handle short-term financial needs while keeping your long-term wealth creation intact.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key is to use it responsibly. Understand the costs, risks, and repayment terms before borrowing. If used correctly, this financial tool can help you manage cash flow efficiently without compromising your future goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In simple terms, it gives you the best of both worlds: Liquidity today and growth for tomorrow.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b><i>Disclaimer:<\/i><\/b><i><span style=\"font-weight: 400;\"> Mutual fund investments are subject to market risks. Read all the related documents carefully before investing. This content is purely for information purpose only and in no way is to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Investors are requested to do their own due diligence before investing.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">SEBI Reg No.: Broking \u2013 INZ000240532, Research Analyst \u2013 INH000020086, Depository Participant \u2013 IN-DP-416-2019, Depository Participant Number: CDSL \u2013 12088800, NSE (90165), BSE (6707), MCX (57525), NCDEX (1315), MSEI (85300).<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">Registered Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">For complete Terms &amp; Conditions and Disclaimers, visit <\/span><\/i><a href=\"https:\/\/www.paytmmoney.com\/\"><i><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<div style=\"max-width: 100%; margin: 20px 0; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">\n<style>\n        \/* Hides default browser arrow\/triangle for a clean professional look *\/<br \/>        summary::-webkit-details-marker { display: none; }<br \/>        summary { list-style: none; outline: none; }<br \/>    <\/style>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">1. What is a loan against mutual funds and how does it work?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">A loan against mutual funds is a secured loan where you pledge your mutual fund units as collateral. The lender marks a lien on the units and disburses funds based on their value, while you continue to remain invested.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">2. How much loan can I get against mutual funds in India?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">The loan amount depends on the Loan-to-Value (LTV) ratio. Typically, you can get up to 60% of equity fund value and 70% to 80% of debt fund value.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">3. Is there any tax on loans against mutual funds?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">No, there is no capital gains tax since you are not redeeming your investments. However, interest paid on the loan is not tax-deductible for personal use.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">4. Can I continue my SIP after taking a loan against mutual funds?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Yes, your SIPs and existing investments continue as usual. Pledging mutual funds does not affect your ongoing investment contributions.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">5. What happens if I fail to repay a mutual fund loan?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">If you default, the lender has the right to redeem your pledged mutual fund units to recover the outstanding loan amount.<\/div>\n<\/details>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>You never really plan for sudden financial needs. It could be a medical expense, a business opportunity, or even a temporary cash crunch. In such moments, your first instinct might be to withdraw from your savings or redeem your investments. But what if most of your money is already invested in mutual funds? Selling your<a href=\"https:\/\/www.paytmmoney.com\/blog\/loan-against-mutual-funds-funds-without-selling-investments\/\">Continue reading <span class=\"sr-only\">&#8220;Loan Against Mutual Funds: Quick Funds Without Breaking Investments&#8221;<\/span><\/a><\/p>\n","protected":false},"author":51,"featured_media":6652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[827],"tags":[1637,1644,1636,1639,1633,1635,1643,1640,1634,1638,1642,1641],"class_list":["post-6651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","tag-borrow-against-mutual-funds","tag-get-loan-without-selling-mutual-funds","tag-instant-loan-against-mutual-funds","tag-loan-against-mf-units","tag-loan-against-mutual-funds","tag-loan-on-mutual-funds-india","tag-mutual-fund-backed-loan","tag-mutual-fund-collateral-loan","tag-mutual-fund-loan","tag-mutual-fund-pledge-loan","tag-overdraft-against-mutual-funds","tag-secured-loan-mutual-funds"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=6651"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/6652"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=6651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=6651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=6651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}