Loan Against Mutual Funds

A Loan Against Mutual Funds (LAMF) allows you to borrow money by pledging your mutual fund units as collateral. Here are some key points:

Advantages:

1. No need to sell your mutual funds: You can get funds without liquidating your investments.

2. Quick access to funds: Loans can be disbursed quickly, often within 24 hours.

3. Interest only on utilized amount: You pay interest only on the amount you actually use.

4. Flexible repayment options: Repayment terms can vary, often ranging from 7 days to 36 months.

Eligibility and Features:

• Eligible borrowers: Individual investors, NRIs, firms, HUFs, trusts, and companies.

• Loan amount: Typically up to 50% of the Net Asset Value (NAV) for equity mutual funds and up to 80% for debt mutual funds.

• Interest rates: Generally range from around 9% to 11%.

Business Loan

A Business Loan is a type of financing that businesses can use to meet their financial needs, such as expanding operations, purchasing equipment, or managing cash flow. Here are some key points:

Advantages:

1. No collateral required: Many business loans are unsecured, meaning you don't need to pledge assets as collateral.

2. Flexible loan amounts: Business loans can range from a few lakhs to several crores, depending on your needs and eligibility.

3. Quick approval and disbursal: Some lenders offer fast approval and disbursal processes, often within a few days.

4. Flexible repayment terms: You can choose repayment terms that suit your business's cash flow, typically ranging from 12 to 60 months.

Eligibility:

• Business type: Sole proprietorship, partnership firm, private limited company, trust, LLP, etc.

• Business tenure: Usually, the business should have been operational for at least 3 years.

• Turnover and profit: Minimum turnover and profit criteria may apply.

Personal Loan

A Personal Loan is an unsecured loan that you can use for various personal expenses like medical bills, home renovation, travel, or any other immediate financial need. Here are some key points:

Advantages:

1. No collateral required: You don't need to pledge any assets.

2. Flexible use: The loan can be used for any personal need.

3. Quick approval and disbursal: Many lenders offer fast approval and disbursal, often within 24-48 hours.

4. Fixed interest rates: Most personal loans come with fixed interest rates, so your monthly payments remain consistent.

Eligibility:

• Age: Usually between 21 to 65 years.

• Income: Minimum monthly income requirements vary by lender.

• Employment: Both salaried and self-employed individuals can apply.

• Credit Score: A good credit score (typically 700 and above) improves your chances of approval and getting a lower interest rate.