If you’ve spent years building a mutual fund portfolio, you already understand the quiet power of compounding. But what happens when life throws a sudden expense your way, like a medical emergency, a home renovation, a child’s education fee, or a business opportunity that won’t wait? Redeeming your mutual funds in a hurry feels like breaking a piggy bank you’ve spent years filling. You lose out on future returns, trigger capital gains tax, and disrupt long-term financial goals.
The smarter alternative? A Loan Against Mutual Funds (LAMF).
LAMF lets you pledge your mutual fund units as collateral and borrow against them without selling. Your investments continue to grow, you keep earning returns, and you get instant liquidity at interest rates often half of what personal loans charge. Thanks to digital-first fintech platforms and broker apps, the entire process now takes minutes, not days.
Here’s an in-depth guide to the best LAMF apps in India for 2026, complete with what each platform offers, who it’s best for, and how they stack up against each other.
Groww has emerged as one of India’s most trusted investment platforms, and its Loan Against Mutual Funds offering (via Groww Creditserv Technology, its NBFC arm) brings the same simplicity to borrowing. The pledging happens entirely in-app, and disbursal is quick once verification is complete.
Key features:
- Loan amount up to ₹15 crore
- 100% digital, paperless application process
- Quick disbursal once units are pledged
- Interest rates starting from around 10.5% p.a.
- An overdraft-style facility that allows you to pay interest only on what you use
- No prepayment or foreclosure charges
- Pledged units continue to earn returns
- Wide coverage of equity, hybrid, and debt mutual funds
Best suited for: First-time LAMF users, existing Groww investors, and anyone who values a clean, transparent experience over complex products.
Watch out for: Loan eligibility depends on the fund being on the approved list. Check before assuming all your units qualify.
- Bajaj Finserv
A heavyweight in India’s NBFC space, Bajaj Finserv offers one of the most established LAMF products in the market, known for high loan limits and competitive pricing.
Key features:
- Loan amounts ranging from ₹25,000 up to ₹1,000 crore
- Interest rates starting around 9.99% p.a.
- Overdraft-style facility with online drawdown
- Both equity and debt mutual funds eligible
- Quick online approval, especially for existing customers
- Flexible repayment tenure
Best suited for: Borrowers seeking larger ticket sizes, high-net-worth individuals, and those who prefer a traditional NBFC backing.
Watch out for: Processing fees and renewal charges. Verify these upfront.
- Mirae Asset Financial Services
Backed by the global Mirae Asset Group, Mirae Asset Financial Services has carved out a strong niche in the LAMF space with its digital-first approach and deep integrations with registrars.
Key features:
- Loans starting from as low as ₹25,000, making it accessible for small investors
- Competitive interest rates starting at 10.25% p.a.
- Quick e-KYC and digital pledging via CAMS and KFintech
- Both equity and debt mutual funds eligible
- Backed by a globally trusted asset management group
- Overdraft-style facility
Best suited for: Small-ticket borrowers, conservative investors who value institutional backing, and existing Mirae Asset investors.
Watch out for: Loan-to-value ratios may be conservative compared to pure fintech players.
- Volt Money
Volt Money is a fintech specialist built entirely around LAMF. With deep integrations with mutual fund registrars, it offers one of the fastest pledging experiences in the country.
Key features:
- End-to-end digital journey
- Interest rates starting around 9.99% p.a.
- No foreclosure or part-payment charges
- Loans against a wide range of equity and hybrid funds
- Transparent fee structure with no hidden costs
- Overdraft-style facility
Best suited for: Tech-savvy borrowers who want speed, salaried professionals, and anyone looking for a pure-play LAMF experience.
Watch out for: Smaller brand presence compared to NBFCs, though the product itself is well-built.
- 50Fin
A fast-growing player in the digital LAMF space, 50Fin focuses on speed and accessibility, particularly for young professionals and small-business owners.
Key features:
- Loan disbursal in as little as 4 hours
- Interest rates starting from around 10.5% p.a.
- Pay interest only on the amount utilized
- Transparent pricing
- Fully online process
Best suited for: Borrowers who need quick liquidity, first-time LAMF users, and those with smaller-to-medium portfolios.
Watch out for: Loan limits may be smaller than what NBFCs like Bajaj Finserv offer.
- ICICI Direct LAMF
For investors who prefer a traditional bank backing their loan, ICICI Bank offers a strong LAMF product through its iMobile and net banking platforms.
Key features:
- Competitive interest rates
- High loan limits for premium customers
- Trusted bank-backed product
- Easy integration with existing ICICI accounts
- Overdraft facility available
Best suited for: Existing ICICI Bank customers, conservative borrowers, and those who prefer bank-backed lending over NBFC or fintech options.
Watch out for: Process may be smoother for existing customers; new customers may face additional onboarding steps.
Comparison Table: LAMF Apps in India 2026 at a Glance
| Platform | Interest Rate (Starting) | Loan Amount Range | Disbursal Time | Foreclosure Charges | Best For |
| Groww | ~10.5% p.a. | Mid-sized loans | Quick (digital) | Nil | First-time LAMF users |
| Bajaj Finserv | ~9.99% p.a. | ₹1 lakh – ₹1,000 cr+ | Same day | Nil/minimal | Large ticket sizes |
| Mirae Asset Fin. Services | ~10.25% p.a. | ₹10,000+ | Fast (digital) | Nil | Small-ticket, institutional trust |
| Volt Money | ~9.99% p.a. | Mid-sized loans | Under 15 mins | Nil | Speed seekers |
| 50Fin | ~10.5% p.a. | ₹15,000+ | As fast as 4 hrs | Nil | Urgent liquidity |
| ICICI Bank | Competitive | High limits | Quick (existing customers) | Varies | ICICI customers |
Rates and limits are indicative based on publicly available information as of May 2026 and may change. Always verify on the official platform.
How to Choose the Right LAMF App
Before picking a platform, consider these factors:
- Interest rate: Even a 1% difference can save thousands over the loan tenure
- Eligible mutual funds: Check if your specific funds are on the approved list — not all schemes qualify
- Minimum and maximum loan amount: Match it to your needs
- Processing fees and hidden charges: Read the fine print on renewal and processing fees
- Disbursal speed: If you need money urgently, speed matters
- Repayment flexibility: Overdraft-style facilities are usually cheaper than fixed EMI loans
- Customer support: A responsive team matters when you have margin call queries or repayment issues
A Loan Against Mutual Funds is one of the most underrated financial tools available to Indian investors today. Instead of breaking your investments and losing out on potential future returns, LAMF gives you the best of both worlds: liquidity today, growth tomorrow.
Among the platforms listed, Groww stands out for its user-friendly experience and fully digital process, making it an excellent starting point for most investors. For higher loan amounts, Bajaj Finserv and Abhi Loans are worth exploring, while Volt Money and 50Fin are great for speed. Mirae Asset Financial Services and ICICI Bank round out the list with institutional credibility.
Whichever platform you choose, remember that LAMF is a powerful tool, not free money. Borrow only what you need, repay as soon as you can, and your mutual fund portfolio will keep doing the heavy lifting for your long-term wealth.
Disclaimer: Interest rates, eligibility, loan limits, and features mentioned are based on publicly available information as of May 2026 and are subject to change. Please verify the latest terms directly on the respective platforms before applying. This article is for informational purposes only and does not constitute financial advice.
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