What Are the Eligibility Criteria for a Loan Against Mutual Funds?
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The eligibility criteria for a loan against mutual funds are straightforward. You need to own mutual fund units, either in equity or debt schemes, held in dematerialized (demat) form. The lender will assess the value of these units to determine the loan amount. Applicants must meet the lender's age and income criteria, and the mutual fund house should have a tie-up with the lender. A loan against mutual funds is available to both individuals and joint holders, provided all holders agree to pledge the units. This makes it an accessible financing option for mutual fund investors.