# Loan Against Mutual Funds — Arthum Wealth Services

Pledge your mutual fund units and unlock a credit line — without redeeming.

## Why this beats redeeming
- **Compounding stays intact** — units remain invested
- **No capital gains tax** — selling 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 amount drawn

## How it works
1. Share your MF holdings statement (CAS).
2. We identify eligible schemes and LTV (typically 50–80% depending on equity vs debt).
3. Digital pledge — units stay in your folio, marked as lien.
4. Sanction within 24–48 hours.
5. Draw what you need, when you need.

## Good use cases
- Medical or family emergency without panic-selling
- Short-term working capital for self-employed
- Down-payment funding while home loan is processing
- Avoiding high-interest credit card debt

## Things to remember
- Equity MF values can fall — top-ups may be required if LTV breaches
- Pledged units cannot be redeemed until loan is repaid
- Borrow for needs, not speculation

*Loans are subject to lender approval and terms.*