Top Apps Offering Loan Against Mutual Funds in India

Facing a cash crunch but don’t want to sell your mutual funds and lose out on potential returns? Loans against mutual funds (LAMF) are becoming one of the most popular ways to unlock liquidity using your existing investments as collateral. Instead of liquidating your portfolio, you can pledge units and get cash, often within minutes and at attractive interest rates.

Here are the top apps and platforms in India that let you take a loan against mutual funds, with key features, why they’re worth considering, and tips for choosing the right one for your needs.

Best App for LAMF

Groww Credit

Groww, India’s No. 1 stockbroker, has launched a Loan Against Mutual Funds (LAMF) facility through its Groww Credit app. This allows investors to pledge their mutual fund holdings as collateral and get a credit line at interest rates starting from 10.49% p.a.

The investor gets funds while continuing to earn returns on their mutual funds (i.e., your funds remain invested).

Groww Credit supports LAMF with high credit limits (up to ₹15 Cr depending on holdings), flexible withdrawal, and repayment within the tenor. The best part is that interest is only charged on the amount you actually withdraw, not the full sanctioned limit.

Volt Money

Volt Money offers a fully digital loan against mutual funds solution with minimal paperwork and fast approvals. It’s particularly appealing if you want a quick, app-based experience without extensive documentation. It is best for users who want a quick, paperless solution with flexible repayment. 

FundsApp

FundsApp provides an instant mutual fund-backed loan that lets you keep your investments working while you borrow against them. The entire process, from eligibility to fund disbursal, is aimed to be fast and hassle-free. The platform offers 100% paperless digital KYC and flexible repayment options. 

Quicklend

Quicklend offers an easy and intuitive way to convert mutual funds into instant cash through a pledged credit line. While it may be slightly slower than some peers, the user experience is smooth and supportive. The app has a simple workflow to pledge mutual funds and helpful customer support. 

DhanLAP

DhanLAP provides another reliable option to unlock funds by pledging your mutual funds. It’s known for very fast disbursal, good LTV (loan-to-value) rates, and flexible repayment choices. It offers instant or same-day disbursal, and up to ~50–70% of your fund value can be borrowed. 

Tips Before You Apply

• Compare interest rates: LAMF rates are generally lower than personal loans but vary widely, from ~7.5% to 15%+ depending on the provider.
• Check LTV ratio: Some platforms allow higher loan amounts based on the type of fund you hold.
• Understand risks: If the fund value falls significantly, you might be required to maintain margin or face the sale of your pledged units.
• Read the terms carefully: look out for fees, repayment options and foreclosure charges.

Conclusion

Loan Against Mutual Funds is fast becoming a go-to solution for liquidity without losing long-term upside on your investments. Whether you need quick cash for emergencies or want flexible repayment options while continuing your investment journey, there’s an app for every kind of borrower.

Choose based on speed, cost, and comfort with digital processes, and always read the fine print before pledging your mutual funds.