Hello There!
Have you ever wondered? How to get instant cash and keep building your long-term wealth?
Sudden financial emergencies may necessitate quick access to funds.
Here are some questions that may arise when planning to take a loan.
- Have you ever had an unexpected financial emergency?
- Would it be better for you to use your savings for immediate liquidity requirements?
- Does selling the securities of your mutual funds interfere with your financial goals?
If you are getting these questions in your mind, this blog post will provide you with tips on how one can leverage their mutual fund investments and borrow for their short-term needs.
Let’s first discuss the basic meaning of Mutual Fund Loans
A loan against mutual funds enables you to borrow money by leveraging your mutual fund investments as collateral. If you are planning for such loans then it is possible with Neoble . This type of loan is an optimal choice for you, as it allows not only to meet your short-term funds requirement but also allows you to retain the compounding benefits of your investments. Thus ensuring that your long-term financial goals remain intact.
How to Access Loans Against Mutual Funds?
By applying these following steps you can easily access or get your loan disbursed.
1. Check if your mutual funds are eligible for pledging as collateral.
2. Go to Neoble.in and fetch your Neoble LAMF Portfolio within 2 minutes.
3. Apply for the loan by filling out the necessary forms and providing details of your mutual fund holdings, including the folio number and other relevant documents.
4. The lender will place a lien on your mutual fund units, restricting your ability to redeem or sell those units until the loan is repaid.
5. Once the lien is in place, the lender will disburse the loan amount to your account.
After discussing the procedure to access a loan against mutual funds, let’s check out their advantages or benefits to borrowers:
| Lower Interest Rate | You can get loans against mutual funds at a lower rate of interest starting from 10.5% as against personal loan interest rates of 12-24% pa. |
| Say No To Redeem | If you get a loan and use your mutual fund units as collateral, you do not need to redeem your funds. |
| Flexible in Nature | You are only supposed to pay the interest on the funds you invest, and not on the entire loan you take from the bank. Further, you may use it as an overdraft facility and withdraw what you want and return whenever you wish. |
| Ownership of Investments | Unlike redemption, here you will continue to enjoy the ownership benefits of your investments. |
| Quick | You can get the limit sanctioned in 15 minutes and get funds within 2 hours. As against, your redemption of Mutual Funds gets you money on T+2 day. |
Conclusion
You will be able to access loans without having to sell off your investments. You will enjoy lower interest rates and earn returns by using your mutual funds as security. However, considering factors such as market variations and meeting payment deadlines are also important for you. This makes it possible for you to use your mutual fund investments effectively to meet your financial requirements.
Thus, as sharing is caring, good savings are crucial for borrowers to think deeply and decide about their personal future and financial safety.
So Investors! What are you waiting for, act smartly to nurture your best future with Neoble – Best Loan Against Mutual Fund Company.