Loan Against Mutual Funds Calculator

A Loan Against Mutual Funds calculator is helpful for you as it facilitates:

• Estimating how much you can borrow against your existing portfolio
• Understanding your monthly interest outgo before you apply
• Planning for the principal repayment due at the end of your tenure
• A more accurate repayment plan
• Replanning and readjusting your tenure or pledge amount if required

The formula for calculating your Loan Against Mutual Funds interest is:

Monthly Interest = P × R / 1200
Total Interest = P × (R / 100) × (N / 12)

where,

To explain it further, let's see an example:

Suppose you pledge mutual funds worth ₹1,00,000 (Equity, LTV 50%), giving you an eligible loan amount of ₹50,000, at an annual interest rate of 12% for a tenure of 12 months.

Using the formula:
Monthly Interest = 50,000 × 12 / 1200 = ₹500 per month
Total Interest = 50,000 × 0.12 × (12/12) = ₹6,000

This means you'll pay ₹500 every month for 12 months, and repay the principal of ₹50,000 in full at the end of the tenure, for a total amount payable of ₹56,000.

The best thing about our Loan Against Mutual Funds Calculator is that you can use it even if you haven't pledged your funds yet. It's ideal for first-time borrowers, as it will present a clear picture of what they can borrow and repay.

You just need to enter three key elements, your portfolio value, the fund type (Equity or Debt), and your preferred tenure. The interest rate and eligible amount are calculated automatically. There are also sliders through which you can adjust the rate and tenure as per your requirements.

There are numerous advantages to using the KreditBee LAMF calculator. Some of the advantages are:

• Simple process: The process to use it is pretty simple and straightforward. It facilitates an easy understanding of the complete loan journey.
• Easy accessibility: The tool is available for one and all to use, free of cost, and hence is easily accessible to anybody who wants to use it.
• Planning your pledge: Our calculator helps you plan how much of your portfolio to pledge, and for what tenure.
• Rendering accurate data: Our calculator is an auto-generator tool, and it takes complex calculations to render accurate data about your interest and repayment.
• Simplifying loan planning: As the tool lays out a detailed description of your loan's components, it helps in planning out a better, more streamlined way of repayment.