You have been investing in mutual funds for a while — SIPs are running, portfolio is growing. Then an unexpected expense comes up. A medical bill, a business need, a family requirement. And the first instinct is to redeem your funds.
Before you do that, there is a better option worth considering — a loan on mutual funds. You stay invested, your compounding continues, and you still get the cash you need. Here is everything you need to know about loan against mutual funds eligibility before you apply.
What is a Loan on Mutual Funds?
A loan on mutual funds is a way to raise funds by pledging your mutual fund units as collateral. You do not sell your units — a lien is simply marked on them for the duration of the loan. Your funds stay invested and keep earning, while you get access to liquidity.
With Bajaj Finserv Loan Against Mutual Funds, you can borrow up to 90% of your mutual fund value, with loan amounts going up to Rs. 1,000 crore. Interest is charged only on the amount you withdraw and not the full sanctioned limit, making it one of the most cost-efficient borrowing options available.
Before you apply, here is what Bajaj Finance looks at:
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Age: You should be between 21 and 90 years of age.
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Employment type: The facility is available for both salaried and self-employed individuals.
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Minimum portfolio value: Your mutual fund holdings should have a minimum value of Rs. 50,000.
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Ownership: You should be the registered owner of the mutual fund units with clear and marketable title.
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Fund type: Your funds should be on Bajaj Finance’s approved list of 5,000+ mutual funds, registered with CAMS or KFintech.
That is it. You don’t need an income proof for the loan itself or a lengthy credit assessment. Your mutual fund portfolio does the talking.
Which Mutual Funds Are Eligible?
Not every fund in your portfolio may qualify, so it helps to know what works:
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Both equity and debt mutual funds are accepted as collateral.
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Funds must be held with AMCs registered under CAMS or KFintech.
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The approved list covers 5,000+ schemes across 40+ AMCs, so chances are your funds already qualify.
You just need basic documents like PAN card, KYC proof — Aadhaar, Passport, Driving Licence, or Voter ID and. Mutual fund holding statement. For the approved mutual funds list, check directly on the Bajaj Finserv website before applying.
Why a Loan on Mutual Funds Makes Sense
Here is what makes this product useful for an investor like you:
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Your compounding does not break. Redeeming funds mid-way kills the compounding effect you have been building for years. A loan lets you preserve it.
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You pay only for what you use. Borrow Rs. 2 lakh from a Rs. 10 lakh limit — you pay interest only on Rs. 2 lakh.
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Fast and fully digital. With Bajaj Finserv, the entire process — from application to disbursal — happens online.
That is all. The rest is handled digitally.
The Bottom Line
A loan on mutual funds is a way to stay invested while handling life’s financial surprises. The loan against mutual funds eligibility criteria is simple, the process is digital, and the cost is far lower than breaking your investments or taking an unsecured loan.
Ready to unlock liquidity without touching your investments? Check your loan against mutual funds eligibility on Bajaj Finserv today and get funds in your account — without disrupting the wealth you have spent years building.
*Terms and conditions apply