Most people often opt to sell their hard-earned mutual funds to take care of urgent cash needs that have backed them into a corner. It may seem convenient at the time, however, somewhere down the road you’ll rue the potential gains you’ve lost once these urgent needs become a thing of the past.
That’s why smart borrowers instead turn to Abhiloans for a quick loan against securities, which still provides the money you need whilst all the while safeguarding your investment.
Know About ‘Abhiloans’ Loans against Mutual Fund Scheme
Abhiloans is revolutionizing how the typical loan against mutual fund scheme works. Traditionally, this was a model that only targeted higher loan sizes which locked out the common man, who was keen to take out smaller loan sizes, less than 25,000 Rs against their mutual fund units.
Ordinary Indians who have small units can now also benefit thanks to the Abhiloans’ loan against mutual fund scheme. With us, you can borrow up to as little as Rs 15,000. This means you don’t have to have huge mutual fund units as has always been the case when you take out loans from banks and other lenders.
Reasons to go with Loans against Mutual Fund
There are many reasons why loans against mutual funds are appealing and convenient, and some of those include:
- No physical assets needed
Many people today don’t have valuable collateral to give lenders or banks. Consequently, such people have their hands tied as they cannot take out loans due to a lack of security.
A quick loan against shares and mutual funds enables those without assets to also qualify for loans, provided they have just a small amount of mutual fund units, shares, and marketable securities at large. As a result, loans against mutual funds have greater accessibility to Indians from all walks of life.
- Your investment remains intact
When you take out a loan against your mutual fund units, you don’t lose these assets as opposed to when you outrightly redeem them for cash. What happens is that we gain a temporary lien which is revoked once you pay off your loan.
In the long run, you get all your mutual fund units back after loan repayment. Everything remains intact and you don’t lose even a single unit of your mutual fund investment.
- Excellent investment ROI
Even when there’s a loan against your mutual funds, your units still retain the potential to grow in terms of market value depending on favorable market conditions.
If you’d have liquidated them for cash, then you’ll have lost out on future gains accruing from the increasing value of your mutual funds. Therefore, a quick capital against shares loan ensures business as usual, by enabling you to keep on benefiting from your investment like normal.
- High-value loans made possible within 24 hours
Getting high-value loans often means having huge assets to match such as a car or a house. However, things are extremely different at Abhiloans. We offer you high-value loans of up to as much as 10 lakhs using only your mutual funds as a guarantee and within 24 hours.
- Quick financing to meet pressing needs
Certain monetary needs arrive unannounced. For instance, a sudden hospitalization requires quick action, but putting together such funds in a short period can be a tall order.
We understand this and that’s why we offer options for a quick loan against securities at cheap rates to sort out emergencies when they pop out of the blues. Our loan disbursal process takes only 24 hours.
Merits of Applying for Loan Against Mutual Fund
Applying for a loan against mutual fund with Abhiloans has many merits compared to banks and other lenders, some of which encompass:
- Lower EMI for high-value loans
Abhiloans allows adequate breathing space to get your finances in order. For instance, when you secure a loan of Rs 100,000 against your mutual funds, you can pay it back in monthly installments of only Rs 1,330, the principal can be paid when you want..
- No pre-payment penalties
Most banks enforce a pre-payment penalty, usually about 2% of the principal you borrowed when you pay your loan ahead of time.
That’s not the case with Abhiloans which encourages and allows you to pay your loan against mutual funds early, without the consequences of any pre-payment penalties.
- Flexible loan amounts
Abhiloans offers one of the most flexible loan ranges in the market, allowing you to borrow from as little as Rs 15,000. When you take into account the fact that big banks such as the ICICI Bank won’t go any lower than Rs 50,000, then you’ll quickly appreciate that Abhiloans offers the most convenient, quick loan against securities in the market.
- Lower interest rates
Mutual fund units count as excellent security for your loans. It is for this reason that you get lower interest rates compared with us as opposed to if you take out personal loans against other types of securities.
- No bad credit profile or purpose restrictions
Banks and several other lenders will lock out certain borrowers when they deem them high-risk cases. At Abhiloans, we do not discriminate against our borrowers based on their financial histories. Moreover, we don’t require you to state a specific purpose for your loan. You get approval regardless to do as you please with your money.
How to Apply for Abhiloans’ Loans against Mutual Fund Scheme
The process is fully digital when you apply for a quick loan against securities with Abhiloans, which makes it simple and quick. It is a fast 4-step process that involves:
- Logging in to the Abhiloans website. You can do so via your Aadhar-enabled mobile number
- Uploading your KYC documents. Alternatively, completely your KYC from scratch if you hadn’t done so before
- Signing a lien on your mutual funds to get your loan, starting from Rs 15,000
- Abhiloans now disburses the loan to your account
The best part is that you can apply from home for quick loan processing, without setting foot outside your door. So you get affordable loans against mutual funds at the convenience of your fingertips.
Abhiloans has a proven track record of blending technology to offer affordable financial solutions to all. Our loan against mutual fund scheme is our commitment to pushing the envelope of innovation, ensuring cheap and quick credit solutions to help our customers get out of a financial jam using nothing but their digital assets. Call Abhiloans today to get your loan against mutual fund.