Stay invested
Pledge eligible mutual fund units instead of redeeming them, so your holdings remain in your portfolio and your long-term plan stays intact.
Loan Against Mutual Funds
Stay invested.
Access funds.
A secured, fully digital overdraft against your eligible mutual funds — so you can meet today's needs without redeeming the portfolio you have built.
Secured overdraft facility
Let your investments stay where they belong.
Interest from
9.50%* p.a.
Overdraft limit
₹1 lakh – ₹1 crore*
Loan to value
Up to 50% / 75%
Prepayment charge
Nil
*Indicative. Final rate, limit and loan-to-value depend on eligibility, approved securities and the Bank's assessment. View disclosures
Why LAMF
Liquidity today, without giving up tomorrow
Built for investors who need funds but would rather not redeem a long-term holding to get them.
Interest only on what you use
Interest is calculated on the utilised outstanding amount, for the period it remains outstanding, and is serviced monthly.
Draw, repay, redraw
An overdraft facility rather than a fixed EMI loan. Repay and redraw within your available limit, subject to applicable conditions.
A digital journey
Portfolio fetching, eligibility assessment, pledge creation, KYC, agreement execution and overdraft account opening — end to end.
No prepayment penalty
Nil prepayment and closure charges. Settle early whenever your cash flows allow, subject to account terms.
Transparent eligibility
See which of your holdings are eligible and which are not, based on the Bank-approved scheme list and applicable product rules.
Mutual fund investments remain subject to market risk. Staying invested does not assure any future growth or return.
Indicative calculator
See what your portfolio could unlock
Move the slider to get an indicative overdraft limit based on the value and category of your eligible holdings.
Your mutual fund category
₹1 lakh₹2 crore
Only schemes on Federal Bank's approved list are eligible. ELSS and schemes outside the approved list are excluded.
Indicative overdraft limit₹5,00,000
Your investments stay in your portfolio. You borrow against them instead of redeeming them, and pay interest only on what you use.
Check eligibilityFor illustration only. This is not a loan sanction, offer or commitment by the Bank, and assumes every holding entered is Bank-approved. Your actual loan-to-value, sanctioned limit and drawing power depend on the prevailing NAV, scheme eligibility, regulatory limits and the Bank's credit policy. Minimum facility ₹1 lakh; maximum ₹1 crore.
How to apply
Four steps, start to disbursal
A digital journey designed to keep the paperwork light and the terms clear at every stage.
- 01
Discover your limit
Verify your details, fetch your mutual fund portfolio digitally and see the holdings eligible for a pledge.
- 02
Pledge your units
Select eligible units and complete the pledge or lien creation in favour of the Bank.
- 03
Complete the essentials
Finish KYC, then review your Key Fact Statement, sanction terms and facility agreement before you accept.
- 04
Access your funds
On approval, your overdraft account is opened and you can draw within the available drawing power.
Eligibility
A few things to check first
Suited to salaried individuals, self-employed professionals, business owners and investors who need short-term or intermittent liquidity.
Who can apply
- You are a Resident Indian individual.
- You are between 18 and 70 years of age.
- You hold eligible mutual fund units in your own name.
- Your holdings appear on Federal Bank's approved list of schemes.
- The eligible amount against your portfolio is at least ₹1 lakh.
What to keep ready
- PAN.
- Aadhaar or another officially valid identity and address document, where applicable.
- The mobile number linked to your verification records.
- Details of your mutual fund holdings.
- Your bank account details.
- Any further information required under KYC, credit or regulatory guidelines.
Meeting these criteria does not amount to a sanction. Approval remains subject to KYC, verification, documentation, credit assessment and the Bank's policy.
Rates & charges
Clear terms, stated upfront
Know what the facility costs before you decide to take it.
Interest starting from
9.50*% p.a.
Charged only on the amount you utilise, for the period it stays outstanding, and serviced monthly.
*Your final applicable rate and APR will be set out in the Key Fact Statement and sanction communication.- Product type
- Secured overdraft facilityAgainst eligible mutual fund units, by pledge or lien
- Facility amount
- ₹1 lakh to ₹1 croreSubject to holding type and value, regulatory limits and the Bank's credit policy
- Loan to value
- Up to 50% or 75% of NAVEquity and Hybrid up to 50%; Debt up to 75%
- Processing fee
- 0.50% of sanctioned limitMinimum ₹1,500, maximum ₹7,500, plus applicable taxes
- Tenure & renewal
- 12 monthsRenewal at ₹1,000 plus taxes, subject to the Bank's approval
- Prepayment / closure
- NilNo charge for early repayment or closure
Stamp duty, statutory charges, pledge-related charges and applicable taxes are payable in addition to the fees above. Interest rates, fees, charges, margins and loan-to-value are subject to revision in accordance with the facility agreement, regulatory requirements and the Bank's policy. Read all disclosures & terms
Suited for
For the needs that cannot wait
Use the facility for permitted personal and business requirements, without redeeming eligible investments.
Medical expenses
Education costs
Home renovation
Business cash flow
Unplanned expenses
Other personal needs
Getting started
Ready to put your portfolio to work?
Check your indicative limit, or speak to us about whether the facility suits your requirement.
For application availability and the approved digital application link, please contact Federal Bank. This page does not collect personal information.
FAQs
Questions, answered
What is a Loan Against Mutual Funds?
It is a secured overdraft facility against eligible mutual fund units that you own. Instead of redeeming your investments, you pledge them or create a lien in favour of Federal Bank, and draw funds within your approved limit.
Which mutual funds can I pledge?
Equity, Debt and Hybrid Mutual Fund schemes on Federal Bank's approved list may be eligible. ELSS and schemes outside the approved list are excluded. Units must be held in your own name.
How much can I borrow against my portfolio?
Up to 50% of NAV for eligible Equity and Hybrid schemes, and up to 75% of NAV for eligible Debt schemes. The minimum facility is ₹1 lakh and the maximum is ₹1 crore, subject to the type and value of your holdings, regulatory limits and the Bank's credit policy.
Do I pay interest on the entire sanctioned limit?
No. Because this is an overdraft facility, interest applies only to the amount you actually utilise and only for the period it remains outstanding. Interest is serviced monthly.
What happens if the value of my mutual funds falls?
Your drawing power or sanctioned limit may be reduced. You may need to repay part of the outstanding amount or pledge additional eligible units. If margin requirements are not restored, or another event of default occurs, pledged units may be liquidated.
Can I prepay or close the facility early?
Yes. There are no prepayment or closure charges. Amounts may be repaid and redrawn within the available limit, subject to applicable conditions.
When can I release my pledged units?
Units can be released once the amounts due to the Bank are settled. Partial release or unpledging is permitted only if the remaining security is sufficient for the outstanding facility.
How long does the facility run, and is renewal automatic?
The tenure is 12 months. Renewal is not automatic — it is subject to satisfactory account conduct, adequate collateral, continued eligibility and the Bank's approval. A renewal charge of ₹1,000 plus applicable taxes applies.