Question 1

What is a Loan Against Mutual Funds?

Accepted Answer

A Loan Against Mutual Funds (LAMF) is a credit line where your mutual fund portfolio serves as collateral. Your units are pledged,not sold. You continue earning returns on your investments while accessing funds whenever you need them. Think of it as unlocking the value of your portfolio without disturbing your long-term wealth plan.

Question 2

Do I need to sell my mutual funds to get a loan?

Accepted Answer

Absolutely not. That's the entire point of Lark Money. Your mutual fund units are pledged as collateral (marked as lien), but they remain in your demat/folio. Your NAV keeps growing, your SIPs continue, and your dividends are still yours. You retain full ownership.

Question 3

How quickly can I get money in my account?

Accepted Answer

With Lark Money, the entire process,from login to credit line activation,takes under 10 minutes. Once your credit line is live, you can withdraw funds instantly. The amount reflects in your bank account within minutes, not days.

Question 4

What types of mutual funds are eligible?

Accepted Answer

Lark Money accepts Equity Funds (up to 50% LTV), Debt Funds (up to 70% LTV), and Liquid Funds (up to 80% LTV). This includes large-cap, mid-cap, index funds, ELSS, corporate bond, gilt, overnight, and most other SEBI-regulated open-ended schemes. The exact eligibility depends on the lender's approved fund list.

Question 5

What is LTV and how does it affect my credit line?

Accepted Answer

LTV (Loan-to-Value) is the percentage of your portfolio value that you can borrow. For example, if you have ₹10,00,000 in equity funds at 50% LTV, your credit line would be up to ₹5,00,000. Higher LTV means more borrowing power,liquid funds offer the highest LTV at up to 80%.

Question 6

How does the multi-lender system work?

Accepted Answer

Lark Money is powered by Lark Finserv's multi-lender orchestration engine. When you apply, your profile is simultaneously sent to multiple RBI-regulated lenders. Each lender evaluates your portfolio and makes a real-time offer,different rates, different limits. You compare and choose the best one.

Question 7

What are the interest rates?

Accepted Answer

Interest rates start from 9.89% per annum and vary by lender, fund type, and credit amount. Since multiple lenders compete for your application, you're more likely to get a competitive rate. You pay interest only on the amount you actually withdraw,not on the full credit limit.

Question 8

Is my data and portfolio safe?

Accepted Answer

Yes. Lark Money uses 256-bit bank-grade encryption for all data transmission. Your mutual fund units are pledged via a lien process,they're never transferred out of your ownership. All lending partners are RBI-regulated NBFCs or banks.

Question 9

Can I repay anytime? Are there prepayment charges?

Accepted Answer

Yes, you can repay anytime,partially or fully. There are zero prepayment penalties. You can set up auto-debit for convenience, or repay manually whenever you want. Interest is calculated daily on your outstanding balance, so the sooner you repay, the less you pay.

Question 10

What happens if my mutual fund value drops?

Accepted Answer

If your portfolio value drops significantly, your credit limit may be adjusted downward (margin call). Lark Money monitors your portfolio in real-time and notifies you well in advance if action is needed. You can either pledge more funds, repay part of the outstanding, or do nothing if you're within limits. Your funds are never sold without your consent.

Frequently Asked Questions.

Don't sell.
Just Lark Money.

Frequently Asked Questions.

Don't sell.Just Lark Money.

Don't sell.
Just Lark Money.