When you take out a loan against your mutual funds, you're essentially using them as collateral. The amount you can borrow is typically based on the current value of your mutual fund units. The interest rates for these loans are often lower than other types of loans because the mutual funds serve as security.
However, if the value of your mutual fund units drops significantly, you may be required to pledge additional units or repay part of the loan. Repayment terms vary, but you can usually repay the loan in installments or as a lump sum at the end of the term. It's important to carefully consider your financial situation and the terms of the loan before proceeding. To know more visit: https://abhiloans.com/services/loan-against-mutual-funds/