Investors can now secure loans against mutual funds with interest rates from major banks

Investors can now borrow against their mutual fund units without selling them. This loan functions like an overdraft, with interest charged only on the amount borrowed. Major banks like SBI, ICICI, and HDFC offer this service. Interest rates for these loans range from about 8% to 11.5%. For a loan of Rs 10 lakh over three years, ICICI Bank charges 11.5% with an EMI of Rs 32,976, while Kotak Mahindra Bank offers 8.5% with an EMI of Rs 31,568. Non-banking financial companies (NBFCs) also provide similar loans, with rates between 8% and 10%. For example, Tata Capital offers an EMI of Rs 31,336 for a Rs 10 lakh loan at 8%. Borrowers can compare rates and EMIs before selecting a lender.