Introduction
Sometimes, handling your finances can feel like climbing Mount Everest, but don’t worry! The first step toward empowerment is to know what options are available. A good option to consider is the loan against mutual funds in India.
This service allows you to benefit from your investments without selling them.
We make the process of taking a loan against mutual funds seamless so that you can focus on what matters.
What Is a Loan Against Mutual Funds?
A loan against mutual funds is an arrangement wherein the invested amount of mutual fund can be used as a security in availing a loan.
Hence, one gets cash at hand without having to sell off much-loved investments. A very handy way to make quick liquidity available without actually letting your investments lie unused.
In a nutshell, it’s a cake to have and eat too.
Key Benefits of a Loan Against Mutual Funds
Let’s discuss the marvellous benefits of a loan against mutual funds:
- Access to Quick Liquidity
Need money fast for that unexpected expense or just some fantastic opportunity? A loan against mutual funds gives you fast liquidity so you will not have to wait in a long line, like with traditional loans. It is your lifeline when you need it the most
The loan taken over mutual funds does not deprive you of owning the investment.
You are not giving up your hard-earned assets but using them as leverage to gain access to the money that you need. Your investments may well increase with time and add up to your wealth.
- Easy Repayment Options
Who does not like choices? Flexible payback periods allow you to repay a loan on your schedule. We understand that life can get unpredictable at Yenmo.
Therefore, we offer varying terms to catch up with your schedules
Loans Against Mutual Funds: Eligibility
The first thing you’d want to know before making an application is the eligibility criteria.
- Documents Needed to Apply
When you apply for a loan against mutual funds with Yenmo, you’ll find that the process is streamlined and completely digital. This means you don’t have to worry about gathering physical documents, which can often be time-consuming and cumbersome. Instead, Yenmo simplifies your experience by fetching your mutual fund investments and KYC (Know Your Customer) details electronically.
Here’s how it works:
- Digital Verification: Yenmo connects with financial institutions and regulatory bodies to securely retrieve your investment data and KYC information. This not only saves you the hassle of manually submitting documents but also speeds up the approval process.
- Real-Time Updates: Because the process is entirely digital, you can receive real-time updates on your application status. This transparency ensures you stay informed every step of the way.
- User-Friendly Interface: Yenmo offers an intuitive platform where you can easily navigate through the loan application process. With just a few clicks, you can input necessary details and submit your application without the stress of paperwork.
- Increased Accessibility: The digital nature of Yenmo’s service allows you to apply for a loan from anywhere, at any time, making it more accessible and convenient for busy individuals.
By leveraging technology, Yenmo not only enhances the efficiency of applying for a loan against mutual funds but also empowers you with a seamless experience that prioritises your time and convenience. So, prepare your identification proof and income details, and let Yenmo handle the rest!
- Eligible Mutual Funds for Collateral
Not all mutual funds are eligible for use as collateral. You can check your loan eligibility within 2 minutes by logging on to our app (app download link can be provided)
Your eligible mutual funds are fetched and you can view your investment amount and eligible loan amount.
How to Obtain a Mutual Funds Loan on Yenmo
Make the move now that has never been easier by using Yenmo.
- Applying for Yenmo Loans
Simply, go to our app and provide us with the information needed. Our friendly team is always ready to lead you through the process of loans from Yenmo for a hassle-free experience. We are just a call or WhatsApp message away.
- Why Yenmo?
The answer is simple: there are many benefits waiting for you at Yenmo. Benefit
from competitive interest rates, quick processing times, and the best customer
support. We’re here to make your loan experience hassle-free so you can focus on achieving your financial goals.
Risks and Considerations Before Taking a Loan Against Mutual Funds
Loans against mutual funds have many benefits; however, there are risks involved:
- Interest Rate Considerations
But before venturing into it, understand how much interest rate you pay upon
loans against a mutual fund. Knowing the cost of borrowed money is a great financial call.
- Risk on Market Fluctuation
Market fluctuations are a natural part of investing, but they don’t have to be a setback. By understanding the risks involved, you’re setting yourself up to make informed, confident choices. Every fluctuation provides an opportunity to learn, adapt, and strengthen your strategy, empowering you to make wise financial moves that align with your long-term goals. With the right insights, you’re not just investing—you’re growing your financial resilience..
Frequently Asked Loans Against Mutual Funds
To help you further, here are some frequently asked questions about mutual fund loans:
- Can I Get a Loan Against Any Mutual Fund?
Not all mutual funds are eligible as collateral. Always check with your lender about their specific requirements.
With Yenmo you can check your loan eligibility within 2 minutes on our app – Download - What Is the Loan Tenure?
Loan tenure can vary among lenders, so be sure to inquire about the terms before applying.
Yenmo provides loan tenure for up to 3 years which can be renewed again for another 3 years.
- What Happens If I Default?
You will lose all or part of the mutual funds you have pledged if you fail to make timely payments. Before borrowing, always evaluate your ability to repay.
With Yenmo you only need to pay interest every month reducing your burden of paying heavy EMIs and reducing the chance of default
In India, loan against mutual funds is one powerful financial strategy when taken with full knowledge and care. You will be accessing the funds you need while still retaining ownership of your assets.
Ready to take the plunge?
Apply for a mutual fund loan with Yenmo today! Let’s stand together as your
strongest companion on the journey to achieving your goals, with complete
confidence and ease.
