Loan Against Mutual Funds at 10% Interest— Without Selling Units
Need cash for a short-term goal or emergency? LAMF lets you borrow against your mutual fund holdings while they stay invested and keep compounding.
Floatr’s Loan Against Mutual Funds (LAMF) helps investors unlock liquidity digitally—pledge eligible units, get funds disbursed quickly, and repay on flexible terms. No premature redemption. No breaking long-term wealth plans.
Short-Term Need, Long-Term Portfolio—Both Can Coexist
When cash is tight, many investors redeem mutual funds—triggering capital gains tax and losing future compounding on those units.
LAMF offers a smarter path: pledge eligible units as collateral, receive a loan, and let the rest of your portfolio keep working toward your goals.
Don’t sell what you built over years. Borrow against it when you need to.
Smart Liquidity for Mutual Fund Investors
LAMF turns idle portfolio value into usable cash—without undoing years of SIPs.
LAMF on Floatr—Simple and Digital
Eligibility Check
See how much you can borrow against your mutual fund portfolio—instantly in the app.
Digital Pledge
Mark eligible units as collateral with regulated lending partners—secure and paperless.
Quick Disbursal
Funds credited to your bank account once pledge and KYC are complete.
Flexible Tenure
Choose repayment timelines suited to your cash flow—subject to lender terms.
Repay & Release
Close the loan to release pledged units back to your full control—or prepay partially where allowed.
Low Interest Rates
Enjoy competitive interest rates with transparent charges and no hidden fees.
What You Give Up When You Redeem Early
Redeeming ₹5 lakh of equity mutual funds for a short-term need can mean capital gains tax plus lost future growth. LAMF lets you access a portion of that value while units stay invested.
A temporary need shouldn’t end a permanent wealth plan.
*Illustrative examples only. LTV, interest and eligibility depend on lender, fund type and prevailing NAV. Market returns are not guaranteed.
Borrowing vs Selling—What Changes for Your Portfolio
LAMF is a loan secured by mutual fund units—not a redemption. Understanding the difference helps you choose smarter liquidity.
Redeeming Units
- Capital gains — STCG/LTCG may apply on profits per holding period
- Units sold — those holdings no longer compound for you
- Restarting SIPs — rebuilding the same corpus takes years
LAMF (Loan)
- No redemption — units pledged, not sold; no capital gains from selling
- Portfolio growth — NAV changes still apply to pledged units
- Interest cost — you pay loan interest instead of losing compounding
Pay interest for a while. Don’t pay with years of lost compounding.
How LAMF Compares When You Need Cash
Credit cards, personal loans and MF redemption all solve liquidity—but LAMF is built for investors who want cash now without dismantling a portfolio they worked hard to build.
| Factor | LAMF | Personal Loan | Redeem MF Units |
|---|---|---|---|
| Portfolio Impact | Units stay invested (pledged) | No link to investments | Units sold—corpus reduced |
| Typical Cost | Secured—often lower than unsecured | Higher unsecured rates | Capital gains tax + lost growth |
| Speed | Digital—often same day* | 1–3 days typical | 1–2 business days to bank |
| Collateral | Mutual fund units | None / salary-based | Your investment itself |
| Best For | MF investors with short-term needs | Non-investors or no MF corpus | When exiting the goal entirely |
| After Repayment | Pledge released—full holdings restored | Loan closed | Must re-invest to rebuild |
Use your portfolio as collateral—not as something to sacrifice.
*Disbursal timelines depend on KYC, pledge confirmation and lender processing.
₹3 Lakh Emergency—Which Path Protects Your Wealth?
Medical bills, fees or home repairs need fast cash. The wrong choice can cost far more than the emergency itself.
Credit Card / PL
- High interest if not cleared fast
- No link to your investments
- Debt can spiral without discipline
- Portfolio untouched—but costly
Floatr LAMF
- Secured loan against MF units
- Holdings keep compounding
- Repay and release pledge
- Digital process on Floatr app
Emergencies pass. Your mutual fund corpus shouldn’t have to.
Compare total cost of borrowing including interest and fees. Read loan terms before applying.
Repay the Loan—Get Your Units Back
LAMF is a secured loan, not a sale. Once you repay principal and applicable interest per your loan agreement, pledged units are released back to your folio.
During the Loan — pledged units remain in your name; NAV movements affect portfolio value and LTV. Monitor statements in the Floatr app.
Partial Prepayment
Where permitted by the lender, prepay part of the outstanding amount to reduce interest burden or release a portion of pledged units.
On Full Closure
Pledge is removed and you regain full flexibility to redeem, switch or continue SIPs on those units.
LAMF is temporary liquidity. Your long-term plan stays intact.
Loans are subject to lender terms. Failure to repay may lead to invocation of pledge per agreement.
Built for Investors With Real Portfolios
If you’ve built a portfolio, LAMF lets you use it—without undoing it.
LAMF Complements Workplace Investing Programs
Help employees stay invested—even when life needs cash in a hurry.
LAMF Inside the Floatr Ecosystem
Your mutual funds, SIPs and LAMF live in one app—so liquidity and long-term investing work together, not against each other.
How it works
- Check eligibility
- Pledge & verify
- Receive funds
On the App
- Regulated partners
- Dedicated support
- Smart Notifications
One app for SIPs, goals and liquidity when you need it.
Unlock Liquidity Without Redeeming Your Funds
Apply for Loan Against Mutual Funds on Floatr—stay invested, get cash when you need it, and repay on terms that work for you.