Turn Eligible Investments Into a Source of Liquidity
A Loan Against Mutual Funds can provide a credit facility against eligible mutual fund holdings, subject to lender approval, collateral requirements and applicable terms.
Liquidity Without an Immediate Sale
Where permitted, investors may access funds against eligible holdings rather than redeeming them, subject to the facility’s terms.
A Credit Facility, Not a Redemption
The mutual fund units may be pledged as security while the investor takes on a repayment obligation to the lender.
Terms Are Lender-Specific
Interest rates, loan-to-value ratios, eligible securities, tenure, charges and other conditions are determined by the lender.
Know the Commitment
Borrowers should understand repayment obligations, collateral conditions and the consequences of non-payment.
When Liquidity Matters
The facility may be relevant when funds are required for a defined purpose and the investor is considering alternatives to an immediate redemption of eligible holdings.
A Thoughtful Way Forward
Growwize can facilitate access to available lending arrangements and assist with the applicable documentation and process.
Frequently Asked Questions
A loan facility may allow eligible holdings to be pledged instead of redeemed, subject to lender terms.
The relevant lender determines eligibility and approval.
Yes. Interest and other charges apply as specified by the lender.
Important Considerations
This is a credit facility and not an investment product. Interest, fees, collateral and repayment obligations apply as specified by the lender.