How to Get a Loan Against Mutual Funds: Guide

Since cash crunches have become a common phenomenon, having affordable funding solutions is an essential requisite. Having said that, these funding solutions need to be really affordable and accessible in order to be helpful.

For instance, a loan against mutual funds which lets people mortgage their mutual funds bonds and avail a loan against it can be a good option. However, in order to optimize the facility to a maximum, the applicant must be completely aware about all the ins and outs. Hence, on a similar note, below is a small guide on how to get a loan against property. 

What is a loan against mutual funds? 

A loan against mutual funds is a type of mortgage loan wherein the applicant gets to pledge their bonds and other securities as collateral to borrow a loan. The said facility can be availed from any bank or NBFC given the borrower has the required creditworthiness. The best part about this facility is, the borrower gets the desired financing while securing the maturity value of the investment at the same time.

How to apply for a loan against bonds? 

The application procedure is very simple. You can visit the nearest branch of the bank or NBFC you wish to proceed with for the loan and apply then and there. You can also use the online application feature provided by the lender to avail the loan. Just navigate to the online application feature, fill in the application form, attach all the necessary documents and then submit it. Once approved, the money will be disbursed directly into your bank account.

To know more about this facility, click here: A Handy Guide on How to Take a Loan Against Mutual Funds