Eligibility & documents for LAMF

A loan against mutual funds is offered by regulated banks and NBFCs under their own credit policy. The points below reflect common industry practice; your actual eligibility, limits, and charges are confirmed only in the lender’s application flow and agreement.

Typical eligibility

• Age: Often 18 to 65 years at application; some lenders extend bands for certain profiles.
• Residency: Many programmes are for Indian residents; separate rules may apply for NRIs where the lender supports them.
• Employment: Salaried and self-employed individuals are commonly served; specific lenders may add income or GST criteria for large limits.
• Holdings format: Units may be accepted in dematerialised form and/or statement-of-account (folio) form, depending on integration with RTAs and the lender.

Which mutual funds can be pledged?

• Broadly eligible: Many open-ended equity, debt, and hybrid schemes from SEBI-registered AMCs that appear on the lender’s approved list.
• ELSS / lock-in: Funds still inside a statutory lock-in window are usually excluded. After lock-in, pledge may be allowed if the lender supports the scheme.
• Concentration & risk: Some lenders restrict high-volatility categories (e.g. narrow sector/thematic) or offshore funds.
• Minimum portfolio value: Lenders may set a floor (for example from about ₹50,000 to ₹1 lakh of eligible collateral upwards). Minimum draw amounts (e.g. ₹20,000+) also exist on some platforms.

Documents usually required

Digital KYC and data pulls from CAMS / KFintech / depository participants reduce paperwork. You should still be ready with:

• PAN
• KYC proof — commonly Aadhaar; lenders may accept other OVDs permitted under KYC rules
• Bank proof — cancelled cheque or bank statement for disbursement / mandate
• Mutual fund holding evidence — CAS / demat statement as requested
• Photograph where video KYC is not used

Limit size (indicative)

Sizing is tied to NAV × LTV. Retail programmes might range from modest five-figure draws to ₹10–20 lakh or more on equity-oriented collateral, with higher envelopes sometimes quoted for large debt fund collateral — all subject to lender caps and your pledge set.

Tenure

Facilities are often structured as renewable lines (e.g. reviewed every 12 months) or fixed terms commonly in the 12–36 month range, depending on the product. Renewal does not automatically mean you must repay all principal; terms vary.

Before you apply — checklist

1. Compare interest rate type (fixed vs floating), processing fee, and penal charges.
2. Understand margin / shortfall rules if NAV falls.
3. Confirm whether interest applies to daily balance of drawn amounts only.
4. Read foreclosure / prepayment terms.

iVentures Wealth facilitates access to information; credit is extended only by the licensed lending partner. Regulatory disclosures appear on the loan platform.