Loan Against Mutual Fund (LAMF)

Mutual fund investments get bifurcated under three segments: Investment in equity, debt, and hybrid. As there is a risk in investment in equity shares, there is a risk in the mutual funds that invest directly in equity. Compared to the debt, it has an absolutely low risk. Kindly note the below loan-to-value ratios –

1. Against Equity Mutual Funds: 50-60%
2. Against Hybrid Mutual Funds: 55-65%
3. Against Debt Funds: 75-85%

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Key Features of Loan Against Mutual Fund

Benefits of Loan Against Mutual Funds

You can access funds without redeeming your MF units.
Retain ownership while investments continue to grow.
Flexible repayment options aligned with your cash flow.
No restrictions on fund usage – Capex, Opex, working capital, or debt consolidation.
The funding is in the OD facility (pay interest only on the used amount)
The LAMF acts as a liquidity cushion for businesses as well as for individuals.

How Do We Execute the LAMF facility?

1. Submitting the portfolio statement.

2. Analyzing the Strengths and Opportunities.

3. Terkar Capital team shares the In-Principle confirmation (before log in).

4. Post your confirmation, we will get the KYC documents.

5. Log in the Proposal with OTP.

6. Pledging the shares.

7. Final Sanction.

8. Disbursement.

LAS Documents

Generally, documents are very simple, and they vary from applicant to applicant.

1. For Individuals

1. Complete Aadhar card copy.
2. Clear Pan Card copy
3. Cancel cheque
4. Passport-size photo.
5. Portfolio statement.

2. For Businesses

1. Business KYC (As per Partnership firm/ Private Limited company / LLP / Public Limited company / HUF)
2. Owner KYC - as like individuals.

Loan Against Mutual Fund at Terkar Capital

At Terkar Capital, we make it easier for you to convert your mutual fund into immediate liquidity without redeeming it. With our strong expertise in debt facilitation, we structure LAMF facilities that are fast, flexible, and cost-effective. For businesses looking for working capital, our tailored solutions ensure minimum cost and maximum liquidity. We also make sure to offer competitive interest rates, smooth processing, and complete transparency.

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FAQs on Loan Against Mutual Funds

Since the loan is secured against your investments, no credit score check is required in most cases.

Since the loan is often provided in OD format, you only pay interest on the amount you actually use. This makes it an ideal tool to manage seasonal dips in revenue without taking on debt or diluting equity.

Unsecured loans are costly and depend on credit score or financials. LAMF, being secured against mutual funds, offers lower interest rates, faster processing, and no credit score dependency.

There is generally no capping. The limit depends on the portfolio size and fund value. Thus, making it scalable for SMEs as well as large corporations.

Yes. There is no end use restriction. Hence, promoters leverage this facility to infuse capital quickly without diluting ownership or disturbing strategic investments.

We Facilitate the Following Funding Instruments

Client Feedback

What our clients think about us?

D*** Shinde

Terkar Capital has demonstrably improved the quality of funding candidates presented to us. Their rigorous client selection process, including a deep financial analysis, gives us confidence in the businesses we evaluate. Their professionalism and execution are top-notch, making them a trusted partner for any financial institution seeking qualified borrowers.

Pratibha K***

Thank You for the numerous financing options that you make available at a lower cost of borrowing. Terkar Capital not only provides transparency but also values the time of its clients. We appreciate the minimal time you took to provide funds to the company. Highly recommend Terkar Capital for funding requirements.

Harshada T***

We are very thankful to Terkar Capital for your efforts in arranging facility. Their approach is very simple, professional, and fast! The team is highly responsive that executed the process in short span of time without any hassles. Great work... Thank you!

M Dwivedi

Obliged for the services by Terkar Capital in helping secure funds for the business. They offer a broad range of advanced funding solutions and deliver financial solutions that are right for customers. Grateful for the services rendered by your firm.

Terkar Capital is a registered brand of Terkar Global Financial Development Pvt Ltd, an Investment Banking Firm with a national footprint. We work extensively with professionals and businesses of all sizes to arrange debt funding instruments.