How is interest calculated on a loan against mutual funds?

Interest on LAMF is calculated on the outstanding loan amount using the formula: Interest = Principal × Rate × (Days/365). Since it is an overdraft facility, interest accrues only on the amount utilized.

What is the maximum loan amount I can get against mutual funds?

The maximum loan amount depends on the type of mutual fund pledged. For equity funds, lenders offer up to 50% of NAV, while for debt funds, up to 80% of NAV may be available.

Loan Against Mutual Fund Calculator

Q: What is a Loan Against Mutual Funds (LAMF)?

A Loan Against Mutual Funds (LAMF) is a secured loan where you pledge your mutual fund units as collateral to borrow funds, without redeeming your investments. Lenders typically offer up to 50-80% of the Net Asset Value (NAV) of your portfolio.

Estimate interest, loan eligibility, and repayment on your loan against mutual funds—instantly and for free.

Loan Against Mutual Funds Calculator

Current investment value

Loan required

Duration of loan (in years)

Investment value after 3 years if you take LAMF of ₹3,00,000

₹1,78,908

Investment value after 3 years if you redeem ₹3,00,000

₹1,05,370

Savings via LAMF

₹73,538

Save ₹15,68,198 if you stay invested for 30 years!

Year	LAMF	Redemption	Savings via LAMF
Year 0 investment value	₹3,75,000₹3.75L	₹75,000₹75K	-

Year 3 investment value	₹1,78,908₹1.79L	₹1,05,370₹1.05L	₹73,538

Year 30 investment value	₹38,15,192₹38.15L	₹22,46,994₹22.47L	₹15,68,198

*Interest rate taken to be as 9.89% | **XIRR of your investment is taken to be 12%

YENMO

The
GOOD LOAN
Company

Get loan against your mutual funds

100% Safe & Secure

Other Calculators

What is a Loan Against Mutual Funds?

A Loan Against Mutual Funds (LAMF) is a secured credit facility where you pledge your mutual fund units as collateral to borrow funds—without redeeming your investments. Your portfolio continues to stay invested and can benefit from market growth, while you access liquidity for short-term needs such as medical expenses, business cash flow, or education fees. Lenders typically offer up to 50% of the Net Asset Value (NAV) for equity funds and up to 80% for debt funds, depending on the scheme category and credit policy.

How to use this calculator

Enter your mutual fund portfolio value (or the amount you plan to pledge) and the expected loan tenure in months.
Set the annual interest rate—LAMF interest rates in India typically range from 9–12% p.a., though your lender may offer a different rate based on fund type and credit profile.
Review the projected interest, total repayment, and month-by-month breakdown to compare borrowing against redeeming your units.

Key statistic: LAMF interest rates typically range from 9–12% p.a. in India, and because LAMF works as an overdraft-style facility, interest accrues only on the amount you actually utilize—not on the full sanctioned limit.

LAMF vs Personal Loan vs Redemption

Factor	LAMF	Personal Loan	Redemption
Collateral	Mutual fund units	Usually unsecured	Your own investments
Typical interest rate	9–12% p.a.	12–18% p.a.	N/A (you lose future growth)
Portfolio stays invested	Yes	Yes	No
Tax impact	No capital gains on pledge	None on borrowing	Capital gains tax may apply
Best for	Short-term liquidity without selling	Longer unsecured needs	Permanent exit from funds