Pledge your mutual fund units and unlock a credit line at significantly lower interest rates than a personal loan — while your portfolio keeps compounding.
Why this beats redeeming
Compounding stays intact — your units remain invested and grow
No capital gains tax — selling units triggers STCG / LTCG, borrowing doesn't
SIP discipline preserved — you don't break the habit
Cheaper than personal loans — typically 9–11% vs 14–22% on PLs
Pay-as-you-use — overdraft style; interest only on the amount drawn
How it works
Share your MF holdings statement (CAS).
We identify eligible schemes and the loan-to-value (typically 50–80% depending on equity vs debt).
Digital pledge — units stay in your folio, marked as lien.
Sanction within 24–48 hours.
Draw what you need, when you need. Interest only on utilised amount.
Good use cases
Bridging a medical or family emergency without panic-selling
Short-term working capital for self-employed professionals
Down-payment funding while your home loan is being processed
Avoiding high-interest credit card revolving debt
Things to remember
Equity MFs can fall in value — top-ups may be required if LTV breaches
Pledged units cannot be redeemed until the loan is repaid
Choose the loan amount conservatively — borrow for needs, not for speculation
The wealthiest people borrow against assets. The rest sell them.
ARTHUM