Winning Bizness Desk
Mumbai. Mutual funds have become very popular in the last few years and for this mutual fund companies have spent a lot of money on its advertising. Its effect is visible and now investment in different schemes of mutual funds is increasing rapidly. Presently mutual funds form a major part of the investment portfolio of many people. With this, a new trend of loans against mutual fund schemes has started. Many lenders are offering loans against mutual fund schemes at attractive interest rates. The biggest advantage of this loan is that you get easy money to meet small needs. At the same time, investment in a scheme that gives more profits does not have to be stopped. Before proceeding further, let us tell you that every type of loan has two aspects. That is, it has some advantages and there are some disadvantages as well. Here we will tell you about the advantages and disadvantages of a loan against a mutual fund scheme and will also tell you how much cheaper it is as compared to personal loan.
Loan from Rs 10K to 1 Cr
In case of equity mutual funds, you can get up to 50% of the scheme value as a loan. Most loans taken against mutual funds have a tenure of 12 months. With this, you can take a loan of at least Rs 10,000 and up to a maximum of Rs 1 crore. You can apply for this loan from any public or private sector bank.
Credit score plays key role
The loan interest rate on a mutual fund scheme is decided on the basis of your credit score. Usually 9 to 10 percent interest is charged for this loan. Wherein, if we compare it with other loans, then 9 to 24 percent interest is charged in lieu of gold, while 10 to 18 percent interest is charged for personal loan. Many times you have to sell your equity mutual fund units to meet the need of money in an emergency. This affects your returns. In such a situation, a loan against mutual funds can be beneficial for you. But a major disadvantage of this loan is that you will have to bring a top-up in case of a sharp fall in the stock market. That is, the lender asks you to deposit as much money as the equity mutual fund has fallen in value. That's why you should also look at the market condition while taking a loan against mutual funds.
