So I need some money. But the market being so uncertain, I don’t want to sell my mutual funds now.
I am seeing Smallcase offer me a loan against my Mutual Funds for 10.5% interest. The amount offered is about 33% of my portfolio.
Should I go for this?
Has anybody taken a loan against their mutual fund holdings? Pros and cons please.
Expensive for a collateralised loan.personal loan might be cheaper if your CIBIL score is good.
This may help
Not worth it. They take minimum Rs. 999 processing fees or 1% (which ever is higher) of loan taken upto Rs.4999. You can read about it here -Loan Against Mutual Funds (LAMF) FAQs.
Best option is to sell imo.
Are there any other avenues to get low interest loans?
Most personal loans have 10% + interest rates and additional charges like processing fees.
You can get lower interest rate if you have some collateral like Gold/home. But I still suggest selling MF is your best option imo. Markets are at all time high and FII are selling daily. This just seems like a fake rally so FII can sell all their stocks and also make some money from F&O and exit India until things settle down.
If you are salaried, personal loan is better. The interest rate would be around the same.
Is it worth taking loan against mutual funds from Get Instant Loan Against Mutual Funds online in India - Abhiloans
