In today’s fast-paced world, access to quick credits can be a game-changer. New Fintech startup QuickLend is making waves by offering loans to mutual funds (LAMFs) within just 30 minutes. Unlike traditional banks that often involve boring documents and long approval times, QuickLend offers a simple, digital-first solution for investors who need urgent liquidity. Let’s explore how this works, the interest rates, the risks involved, and whether this option is right for you.
What is a mutual fund?
Mutual funds are investment vehicles that pool money from multiple investors and invest in stocks, bonds, or other assets. They provide benefits such as specialized fund management, diversification, liquidity and more. Mutual funds are usually long-term investments, but can also be used through loans for short-term financial needs as well. Investors invest The diversified portlio of mutual funds Enjoy long-term benefits.
Which platform offers loans to mutual funds in 30 minutes?
Quicklend, a Bengaluru-based Fintech startup founded in December 2023 by Raghuram Tirkutam, Arun Jadhav and Abhishek Uppala, is a seamless way to allow investors to pledge their investors as collateral and get a loan within 30 minutes. Provides a platform.
The startup has started with the goal of making secure lending more accessible and efficient. Given the massive growth of India’s mutual fund industry, Rs 66.93 crore (AMFI data) as of December 2024 provides a great opportunity for investors looking for immediate liquidity without selling their investments. Masu.
How do loans for mutual funds work?
QuickLend promotes loans from partner financial institutions such as Bajaj Finserv and Piramal Finance and acts as a lending service provider. Here’s how the process works:
- Pledge Mutual Fund Unit: Investors will provide details about mutual fund holdings through Quicklend’s digital platform.
- Lawn-to-Value (LTV) Rating: QuickLend values the value of mutual fund units and offers loans up to 50% of the fund’s value.
- Loan approval and payment: Once approved, the loan will be paid directly to the investor’s bank account within 30 minutes.
- Repayment and profit: Investors are repaying loans over time, earning profits from the pledged mutual funds.
Loan amount and interest rate
- The loan amount ranges from £25,000 to £3 for retail users, and in some cases, it can be extended up to £1 for businesses.
- interest rate It ranges from 9% to 12% per year, depending on the profiles of financial institutions and borrowers.
- There are no additional charges for customers. Quicklend earns fees from financial institutions according to successful loan payments.
Benefits of mutual fund financing
✅ Quick Processing: No long approvals – the fund is credited in just 30 minutes.
✅ There is no need to sell your investment: Investors hold holds while accessing liquidity.
✅ Low interest rate: Protected loans have lower interest rates compared to Personal loan Or credit card.
✅ Minimum Documentation: The entire process is digital and hassle-free.
The risks and challenges of loans for mutual funds
❌ Market risk: If a mutual fund’s NAV drops significantly, the lender may request additional collateral or partial repayment.
❌ Liquidation risk: Failure to repay your loan on time can forcefully sell your pledged mutual fund.
❌ Limited loan amount: Unlike personal loans, the loan amount is limited to 50% of the fund’s value. This may not be sufficient for larger financial needs.
❌ Regulatory challenges: FinTech startups like QuickLend work with RBI guidelines and changes in lending regulations could affect business models.
Are there other platforms that offer faster loans for mutual funds?
Yes, several Indian financial institutions and fintech platforms offer rapid loans to mutual funds. Here are some notable options:
- ICICI Bank: ICICI Bank offers immediate loans to mutual funds at interest rates starting at 11.50% per year, offering loans of up to Rs 1 trillion.
- Abhiloans: Abhiloans offers loans to mutual funds at a loan and value (LTV) ratio of up to 65% for equity mutual funds and 75% for debt mutual funds. Depending on the lender’s credit limit, the loan amount ranges from 15,000 to 1 trillion Rs.
- Lowercase letters: Partnership with Bajaj Finance Limited Lowercase Investment We offer digital loans to mutual fund units at interest rates starting at 10.75% per year. The platform highlights a fast and seamless online application process.
- Bolt Money: Volt Money offers immediate loans to mutual funds at an interest rate of 9% to 11% per year. The platform boasts a fully digital process that can be completed in about 5 minutes and is funded within four hours.
- Indemon: Indmoney’s Insta Plus feature allows users to pledge and borrow funds to mutual funds at an interest rate of 10.5% per year. The platform offers repayment flexibility, paying only interest per month and giving the principal a solution at the end of the semester.
- dhanlap: DHANLAP allows users to obtain loans on mutual funds and shares instantly with immediate approval, processing and payment. The platform allows users to leverage their investments to secure same-day loans.
- 50fin:In collaboration with Bajaj Finserv Ltd., 50Fin offers loans to mutual funds through a digital process. Users can pledge mutual fund units and continue to earn returns on their investments while accessing liquidity.
Should I take a loan from a mutual fund?
If you don’t sell your investments and need quick liquidity, loans to mutual funds are a great option. However, it is essential to consider the market risks and repayment obligations before choosing such a loan. If inappropriate, borrowings to mutual funds can affect long-term financial goals.
For investors who are confident in their repayment capabilities and want a quick, low-cost loan, this 30-minute LAMF solution might be a wise choice.
Would you like to take a loan against your mutual fund? Please let me know in the comments! 🚀
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