No Impact on your CIBIL Score
LAMF is a type of secured loan that uses mutual fund units as collateral. This means that you can borrow money by using your mutual fund units as a guarantee for the loan. It provides a way for individuals to access funds without having to liquidate their mutual fund holdings.
The loan amount is determined based on the assessed value of the mutual funds you pledge as collateral and the lender's loan-to-value (LTV) ratio. Therefore, the flexibility in loan amount is contingent on these factors and may vary accordingly.
LAMF generally provides more attractive interest rates compared to unsecured loans because they require collateral. This lower risk for the lender allows them to offer better terms for borrowers.
You can maintain ownership of your mutual funds, which helps to sustain their potential growth and has a minimal impact on your investment.
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