Short answer: Banks can lend up to 75% of the value of equity, hybrid and index funds (and ETFs) and up to 85% of debt funds under RBI’s 2026 rules. Your units stay invested and keep earning, but if NAVs fall you may need to repay or pledge more. Loans against equity fund units count towards the ₹1 crore per-person cap.
Last updated: 12 October 2026. General information, not financial advice. Your lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms.
Loan against securities calculator (bank LTV limits)
Enter the current market value of what you would pledge. Figures stay in your browser.
RBI’s LTV limits for banks
| Security pledged | Maximum LTV (banks) |
|---|---|
| Listed shares, listed convertible debt | 60% |
| Equity and hybrid mutual funds, ETFs, REIT and InvIT units | 75% |
| Debt mutual funds | 85% |
| Listed debt securities rated AAA | 85% |
| Listed debt rated AA to BBB | 75% |
| Government securities | Bank’s own policy |
| Sovereign Gold Bonds | Gold loan rules apply |
- Loans against shares and equity fund units are capped at ₹1 crore per individual across the banking system; within that, up to ₹25 lakh can be used to buy shares in the secondary market.
- IPO, FPO and ESOP financing is capped at ₹25 lakh per individual, with at least a 25% cash margin.
- Securities are valued at the lower of the six-month average price or NAV and the previous day’s price or NAV.
- If the LTV is breached, it must be fixed within 7 working days: you repay part of the loan or pledge more.
NBFCs and fintech platforms that offer loans against mutual funds follow RBI’s NBFC rules and their own policies, so limits may differ. Compare the KFS.
How LAMF works
- You choose the funds to pledge; the units are marked with a lien through the registrar (CAMS or KFintech) and stay in your folio.
- You get a credit limit and draw what you need; interest is usually charged only on the amount used.
- Dividends and NAV growth continue. You cannot redeem pledged units until you release the lien.
- If NAVs fall and your loan exceeds the allowed limit, you must repay or pledge more within the lender’s deadline.
LAMF vs redeeming your funds
Redeeming may trigger capital gains tax and exit loads and breaks your compounding. A LAMF keeps you invested, but costs interest and carries margin-call risk. For short needs that you can repay within months, a LAMF is often cheaper than a personal loan.
Secured loan calculators: Gold loan · Loan against shares · Loan against mutual funds · Loan glossary
Frequently asked questions
How much loan can I get against ₹5 lakh of debt funds?
Up to about ₹4.25 lakh from a bank at the 85% LTV, subject to the lender’s approved fund list.
Can I get a loan against ELSS funds?
Units under lock-in generally cannot be pledged until the lock-in ends.
Does a loan against mutual funds affect my CIBIL score?
It is a loan, so it is reported to credit bureaus. Paying interest on time helps; defaults hurt.
Compare lenders: LAMF rates of 10 lenders · Volt Money vs Mirae Asset · SBI vs ICICI · Which LAMF app?
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.