News > 6 things to know about loans against mutual funds
6 things to know about loans against mutual funds
07/08/2024 02:47 PM | Click to read full article
The maximum amount you can borrow is usually determined based on the assessed value of the mutual funds you pledge as collateral and the lenders loan to value (LTV) ratio. It allows you to meet instant financial needs while your mutual fund investments grow and do the work for you. They generally come with lower interest rates than personal loans or credit card advances because the loan is secured against your mutual funds, reducing the overall risk.
