Download the app by scanning the QR code or clicking the links below:
Imagine this: you need ₹3 lakh urgently. Your mutual fund portfolio is sitting at ₹6 lakh, growing quietly. Do you sell half of it and lose years of compounding? Or do you borrow against it, pay a small interest, and let the full portfolio keep working?
Most people don't even know the second option exists. And those who do often get stuck on a simpler question: which app should I actually use?
By the end of this article, you'll know:
Shall we?
A Loan Against Mutual Funds (LAMF) lets you pledge your mutual fund units as collateral and borrow against them — without selling a single unit. Your investments stay invested, keep earning returns, and you get the cash you need.
Think of it as taking a few apples from the tree instead of chopping the whole thing down. The tree keeps growing.
Both Yenmo and Volt Money offer LAMF as their core product. But the experience, pricing, and fine print differ in ways that are worth understanding before you apply.
Here's a quick overview before we go deeper.
Interest rates as of June 2026. Always verify current rates directly with each platform before applying.
| Feature | Yenmo | Volt Money |
|---|---|---|
| Interest rate (p.a.) | Starting from 9.89% | Typically 10.5%–11% p.a. |
| Repayment structure | Interest-only, no mandatory EMI | Interest-only, no mandatory EMI |
| Foreclosure charges | None | None |
| Prepayment penalty | None | None |
| Annual Fee | None | May apply upto Rs 599/year |
| Onboarding time | ~5 minutes | ~10–15 minutes |
| Lending partner | Bajaj Finance, DSP Finance, Tata Capital and also some more banks going live soon | Only DSP Finance |
| Allows pledging Demat mutual funds and stocks | Yes | No |
This is usually the first thing people compare — and rightly so. Even a 1% difference in interest rate adds up faster than you'd expect.
Yenmo offers rates starting from 9.89% p.a. through its lending partnership with Bajaj Finance. Volt Money's rates typically start around 10.5% p.a., depending on which NBFC handles your application.
📌 Let's put numbers to it. Priya borrows ₹3 lakh for one year.
That's a difference of ₹1,830 — just from the rate.
Stretch that to a 3-year loan and the gap widens to over ₹5,000. Not a fortune, but not nothing either.
For a deeper look at how LAMF interest rates are structured and what drives them, this breakdown of loan against mutual funds interest rates is worth a read.
Here's the thing: how you repay matters as much as what you pay.
Yenmo uses an interest-only repayment model. You pay just the interest each month. The principal comes back whenever you choose to repay — no forced EMIs, no fixed monthly pressure on your cash flow. It works like an overdraft facility, not a term loan.
If you're borrowing to manage a short-term cash crunch, being locked into a fixed EMI defeats part of the purpose. The interest-only model gives you breathing room when you need it most.
This is where a lot of platforms quietly let people down.
Yenmo is upfront about its no hidden fees policy: no foreclosure charges, no prepayment penalties, no processing surprises. What you see is what you pay.
Volt Money has received mixed feedback on this front. Some users have flagged annual fees and charges that weren't clearly communicated before they signed up. That doesn't make Volt Money dishonest — but it does mean you need to read the fine print carefully.
👉 Before applying anywhere, ask specifically about:
Speed matters when you need liquidity. Both platforms are digital-first, but the experience is different.
Yenmo's onboarding takes roughly 5 minutes, entirely in-app: instant KYC, fund pledge setup via CAMS/KFin/NSDL, auto-pay configuration, and agreement signing. Funds hit your account quickly after approval.
Both platforms support equity and debt mutual funds. Yenmo also covers hybrid funds, which broadens your eligible collateral pool — useful if your portfolio is spread across fund types.
The lending partner matters too. Yenmo works with multiple lenders including Bajaj Finance, DSP Finance, and Tata Capital — some of the largest and most well-known lenders in India. Yenmo is also going live with a couple of banks soon.
Having multiple lenders allows customers to get the best offerings across major lenders in one place. Yenmo says it has worked deeply with each lender to ensure the interest rates passed on to customers are among the best and lowest in the market.
Volt has only one lending partner, DSP Finance, which limits the offerings it can provide to customers in a single journey.
One underrated feature: Yenmo can pledge your Demat mutual funds and stocks as well.
Those Demat funds you hold in Zerodha, Groww, Angel One, Upstox, or any other broker can all be pledged within the same loan account on Yenmo. For users whose portfolio is spread across different brokers, this is a lifesaver because you can track and pledge all your funds in one single platform.
Volt currently does not offer loans against Demat-based investments.
Let's be direct.
Choose Yenmo if:
Consider Volt Money if:
That said, note that Yenmo has partnered with DSP Finance as well, which is Volt Money's lender.
For most retail investors holding mutual funds in India, Yenmo's combination of lower rates, no hidden charges, and interest-only repayment makes it the stronger choice in 2026.
LAMF interest rates are often linked to the MCLR (Marginal Cost of Funds-based Lending Rate) or the repo rate set by the RBI. Understanding how these benchmarks work helps you anticipate when your rate might change.
If you're curious about how the two compare, this explainer on MCLR vs. repo rate covers the mechanics clearly.
You've worked hard to build your mutual fund portfolio. The last thing you want is to sell it every time life throws a cash crunch your way. A well-structured LAMF lets you access liquidity without stepping off your investment journey.
Head to yenmo.in to see what you're eligible for and how much you could save by staying invested. The whole process takes about 5 minutes.
Your portfolio doesn't have to stop growing just because life needs money right now.
Q1: Is Yenmo better than Volt Money for loan against mutual funds?
For most investors, Yenmo offers a better overall package in 2026 — lower starting interest rate (9.89% p.a.), no hidden charges, interest-only repayment, and faster onboarding. Volt Money is a legitimate platform but typically comes with higher rates and less consistent fee transparency.
Q2: What is the minimum interest rate I can get on a loan against mutual funds?
Yenmo offers rates starting from 9.89% p.a. (as of June 2026) through its Bajaj Finance lending partnership. Your actual rate depends on your portfolio composition, loan amount, and lender assessment.
Q3: Do I have to pay EMIs on a loan against mutual funds?
With Yenmo, no. You pay only the interest component each month. Principal repayment is flexible — you repay when you choose. This is different from a standard term loan where EMIs are fixed and mandatory.
Q4: Will my mutual funds keep earning returns if I pledge them?
Yes. Pledging your units doesn't pause their growth. The NAV (Net Asset Value) of your units continues to move with the market even while they're pledged as collateral. You only lose returns if you actually redeem — that is, sell — the units.
Q5: Are there any charges for foreclosing a loan against mutual funds on Yenmo?
None. Yenmo charges zero foreclosure fees and zero prepayment penalties. You can repay the loan at any time without any additional cost.
Q6: How long does it take to get a loan against mutual funds approved on Yenmo?
Yenmo's digital onboarding takes approximately 5 minutes — covering KYC, fund pledge, auto-pay setup, and agreement signing. Funds are typically disbursed shortly after approval.
Q7: What types of mutual funds are eligible for a loan against mutual funds?
Yenmo supports equity, debt, and hybrid mutual funds. Not all fund houses or schemes may be eligible, so it's worth checking your specific holdings on the Yenmo app or website before applying.
