Gold Loan vs Loan Against Mutual Funds: Speed and Cost Compared

Two Smart Ways to Borrow

Gold loans and loans against mutual funds - both let you raise funds without selling your assets.

Pledge physical gold jewellery and get cash disbursed - often within the hour.

How Gold Loans Work

Mutual fund units stay invested; a lien is marked, and funds are digitally released.

How Loan Against Mutual Funds Work

Gold loans are disbursed in 30 minutes; LAMF typically takes 24–48 hours to process.

Speed: Gold Loan Wins Here

LAMF rates range 8–12% p.a., while gold loan rates can reach up to 24% p.a.

Interest Rates Tell a Different Story

Debt mutual funds offer up to 80% LTV; gold loans are capped at 75% by the RBI.

LTV Ratio - Who Offers More?

With LAMF, pledged mutual fund units still earn returns throughout the loan tenure.

Your Investments Keep Growing

LAMF works as an overdraft - pay interest only on what you actually withdraw.

Repayment Flexibility Compared

Gold loan is best when you are in urgent cash needs. Work on minimal paperwork, short tenure, or in emergency situations.

When Should You Choose a Gold Loan?

Choose a loan against mutual funds for lower cost, higher limit, and keeping your investments intact longer.

When LAMF Makes More Sense

                      Disclaimer                     The information provided on this website is for general informational purposes only and should not be considered financial or legal advice. Please consult with a qualified financial advisor before making any decisions.