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Loan Against Mutual Funds (LAMF)

Need Funds?
Don't Sell your
Mutual Funds.

Avail Loan Against Mutual Funds (LAMF) on approved Equity and Debt Mutual Funds. Pay interest only on the amount you utilize.

Apply now
Calculate your eligible amount
The answer is LAMF STAY INVESTED.
ACCESS FUNDS.
  • Stay invested

    Access funds without redeeming your mutual fund investments
  • Interest only on what you use

    Pay interest on the utilised amount
  • Draw. Repay. Redraw

    Flexible overdraft access within available drawing power
  • A digital journey

    Complete the journey online
  • No prepayment

    Close or prepay without additional charges.

Clear terms,
stated upfront.

Your rate, borrowing limit and charges. All in one place.

Interest rate

9.50 – 12*% p.a.

Charged only on the amount you utilise, for the period it stays outstanding, and serviced monthly.

Explore your borrowing limit *Your final applicable rate and APR will be set out in the Key Fact Statement and sanction communication.

Product type
Secured overdraft facility (LAMF)Against eligible mutual fund units, by pledge or lien
Facility amount
₹25 thousand to ₹1 croreSubject to holding type and value, regulatory limits and the Bank's credit policy
Loan to value
Up to 50% or 75% of NAVEquity and Hybrid up to 50%; Debt up to 75%
Processing fee
0.50% of sanctioned limitMinimum ₹1,500, maximum ₹7,500, plus applicable taxes
Tenure & renewal
12 monthsRenewal at ₹1,000 plus taxes, subject to the Bank's approval
Prepayment / closure
NilNo charge for early repayment or closure

Stamp duty, statutory charges, pledge-related charges and applicable taxes are payable in addition to the fees above. Interest rates, fees, charges, margins and loan-to-value are subject to revision in accordance with the facility agreement, regulatory requirements and the Bank's policy. Read all disclosures & terms

Smart Calculator

See what your portfolio could unlock

Move the slider to get an indicative overdraft limit based on the value and category of your eligible holdings.

Choose Your Mutual Fund Category

Enter ₹50 thousand–₹2 crore, or drag the slider.

₹50 thousand ₹2 crore

Only schemes on Federal Bank's approved list are eligible. ELSS and schemes outside the approved list are excluded.

Indicative overdraft limit (LAMF) Indicative overdraft limit (LAMF): ₹5,00,000 for Equity / Hybrid.

Up to 50% of your eligible equity / hybrid holdings

Your investments stay in your portfolio. You borrow against them instead of redeeming them, and pay interest only on what you use.

Apply now

For illustration only. This is not a loan sanction, offer or commitment by the Bank, and assumes every holding entered is Bank-approved. Your actual loan-to-value, sanctioned limit and drawing power depend on the prevailing NAV, scheme eligibility, regulatory limits and the Bank's credit policy. Minimum facility ₹1 lakh; maximum ₹1 crore.

How to apply

Four steps, start to disbursal

A digital journey designed to make your LAMF quick and hassle free.

  1. 01

    Know your eligibility

    Verify your details, fetch your mutual fund portfolio digitally and see the holdings eligible for a pledge.

  2. 02

    Pledge your units

    Select eligible units and complete the pledge or lien creation in favour of the Bank.

  3. 03

    Complete the essentials

    Finish KYC, then review your Key Fact Statement, sanction terms and facility agreement before you accept.

  4. 04

    Access your funds

    On approval, your overdraft account is opened and you can draw within the available drawing power.

Who can apply
    • You are a Resident Indian individual.
    • You are between 18 and 70 years of age.
    • You hold eligible mutual fund units in your own name.
    • The eligible amount against your portfolio is at least ₹50 thousand.
What to keep ready
    • PAN.
    • Aadhaar or another officially valid identity and address document, where applicable.
    • The mobile number linked to your verification records.
    • Your bank account details.

Meeting these criteria does not amount to a sanction. Approval remains subject to KYC, verification, documentation, credit assessment and the Bank's policy.

Life doesn’t wait

For the needs that cannot wait

Use the facility for personal and business requirements, without redeeming eligible investments.

See what your portfolio could unlock

Today’s needs.
Your long-term plan.

Medical expenses

Make room for care when health needs come first.

Education costs

Plan for fees and the next chapter of learning.

Home renovation

Give essential repairs and improvements the attention they need.

Business cash flow

Bridge a short-term gap between expenses and incoming payments.

Unplanned expenses

Find breathing room when an unexpected cost comes along.

Other personal needs

Meet personal requirements as life moves forward.

Ready to put your portfolio to work?

Check your indicative limit and Apply Now.

Apply now Calculate your limit

FAQs

Questions, answered

Which mutual fund schemes are eligible under Loan Against Mutual Funds (LAMF)

We offer Loan Against Mutual Funds on Eligible Mutual Funds Scheme (Equity Fund , Hybrid Fund , Debt Fund). Simply lien mark your mutual fund units to access funds without redeeming your investments.

How is Loan - to - Value is calculated ?

Loan-to-Value (LTV) is calculated as a percentage of the current market value, based on the Net Asset Value (NAV), of the pledged mutual fund units.

The applicable LTV depends on factors such as the type of mutual fund, its risk profile, and the lender's internal policies. Typically, the LTV offered for equity mutual funds is lower than that offered for debt mutual funds.

The applicable LTV may be revised from time to time in accordance with regulatory requirements and the lender's internal policies.

What documents are required to avail a Loan Against Mutual Funds ?

A Loan Against Mutual Funds account can be opened through the Bank's platform for individual borrowers, subject to successful KYC verification.

For a smooth and hassle-free onboarding experience, please keep the following documents handy:


Proof of Identity and Address - Any of the mentioned documents(Aadhaar Card, Passport, Driving Licence, Voter ID, etc.)         PAN Card
Please note that additional documents may be requested based on regulatory requirements or internal policy guidelines.

What is the Loan tenure, and how does the renewal process work ?

A Loan Against Mutual Funds is typically offered as an overdraft facility with a tenure of one year.

The facility may be renewed annually, subject to factors such as the value of the pledged mutual fund units, account performance, compliance with applicable terms and conditions, and the lender's review and approval process.

Renewal terms may vary based on the lender's policies, regulatory requirements, and the borrower's eligibility at the time of renewal

How is interest calculated and charged ?

Interest is typically calculated on a daily reducing balance basis and charged or debited on a monthly basis.

This makes a Loan Against Mutual Funds a cost-effective borrowing option, as interest is charged only on the amount utilized and for the period it remains outstanding. As a result, borrowers can efficiently manage costs when funds are withdrawn and repaid intermittently.

what happens if there is a shortfall in collateral value?

A shortfall occurs when the value of the pledged mutual fund units declines and the loan breaches the required margin or permitted Loan-to-Value (LTV) limit.

In such cases, the lender may request you to take corrective action by:

Adding additional funds
Pledging more eligible mutual fund units
Partially repaying the outstanding loan amount

These measures help restore the required margin and bring the loan back within the prescribed LTV limits

How can I remove the lien/pledge after loan repayment ?

Once the outstanding loan amount, along with any applicable interest and charges, has been fully repaid, the lender initiates the lien release process.

Following this, the pledged mutual fund units are unpledged through the relevant Registrar and Transfer Agent (RTA) or depository, restoring full control and ownership of the mutual fund investments to the investor.

The timeline for lien removal may vary depending on the lender's process and the applicable RTA/depository procedures.
 

Check before you apply

Approved mutual fund list

View approved list