Loan against mutual funds

Hi, I would like to know which platform is good for loan against mutual funds

I have couple of lumpsum MF units in DEMAT (Coin) and SIP’s in Non-DEMAT (Kuvera). I know even the broking apps itself providing this facility and some 3rd party, AMC (Mirae) are providing this facility.
Any one has prior experience in this? Which platform is better for this? Any one provides overdraft facility?

During emergency, is it OK to redeem equity mutual fund or will take loan on MF’s because redeeming MF creates deviation from long term investment goals

Emergency is emergency, there is no comparing this with other normal situations, including long term goals. So this is the priority, once this is over we can look at long term plans and change those plans if there is an impact. Better to have a separate, big emergency fund which can handle all financial emergencies that you can think of.

1 Like

I agree with you.
But i just wanna know about this facility. Just in case if emergency fund is not covering the need/Insurance is not covering. Then in worst case… Just want to know the process

Of course, knowing always helps.

I answered because you asked if it is OK to redeem or take a loan, and if doing so will change long term plans.

1 Like

I’ve tried Dhanlap and ICICI. I liked ICICI a lot. I’ve also taken up an DSE with them to distribute Loan Against MF.

For details feel free to contact. My details are 93 79 23 05 06

Thanks for the info

Any update in Feb 2024? Looking to get a credit line against MF units held in Zerodha coin demat. Any provider providing such service? Which of them is the lowest interest and no hidden cost one?

You can use Zerodha LAS itself - Loan against securities (LAS) – Zerodha.

Why would I want to go with a company which has a history of such poor service? Also the product is really bad: high interest rate, not available as OD, poor processing time, debt funds not eligible. 2 year max tenure with no renewal option, account has to be closed out.

1 Like

Hi @nithinfan

We thought we’d drop by and explain a bit about Zerodha Capital. We are currently offering a LAS facility for direct mutual funds and stocks. Loans against debt fund to offer is a bit tricky since our systems are not configured to handle the complexity as of now, but we intend to offer this in the future.

As for the interest rate, we think it’s on par with the industry standards, and we’ve recently revised it to fit the economic conditions. Although you might find these rates higher compared to some alternatives, they are still competitive when you consider the high interest rates associated with credit card borrowing.

Our loan processing time is as efficient as possible. Loans are typically processed within a few hours of the application, and the funds are credited almost immediately after approval.

The two-year maximum tenure for our loans is designed to comply with regulatory standards and manage risk effectively. This industry-standard practice helps prevent the perpetual renewal (evergreening) of loans, and please note that the account is not closed after this period. Customers have the option to settle their current loan and apply for a new one if they wish. We’ve listed more features and information on our FAQ page. :slight_smile:

everything is fine but why would you compare LAS with Credit Card loans. Its meaningless.

Also anyone can you please share who is providing better rates than Zerodha? I tried looking at traditional players they have multiple line items for charges adjusting for them how does it look in general.


I could recall 2 platforms one offered by Zerodha itself called Zerodha Capital and other is Smallcase. Please note I have no experience with them but I would first prefer them if needed. You may visit their websites for charges.