#ETMoney #LoansAgainstMutualFunds #LAMF #MutualFundLoans #FintechIndia #WealthCreation #DigitalCredit #SmartBorrowing #360ONE
New offering enables investors to unlock liquidity without disrupting compounding of long-term investments
Chandigarh, July 10, 2025: ET Money, one of India’s leading digital investment platforms and a part of the 360 ONE WAM group (formerly known as IIFL Wealth), has forayed into the secured lending space with the launch of Loans Against Mutual Funds (LAMF). This new-age financial solution allows mutual fund investors to access instant credit without redeeming their investments, ensuring that the power of long-term compounding remains undisturbed.
The launch of LAMF is a significant strategic step in ET Money’s journey toward becoming a comprehensive digital wealth-tech platform, focused on India’s mass affluent and upwardly mobile investors. With this product, ET Money now offers not just investment and insurance products but also credit, closing the loop on full-spectrum financial services.
💡 What is LAMF and How It Works
The Loans Against Mutual Funds offering allows users to pledge their mutual fund units as collateral to instantly avail of credit through ET Money’s mobile app (available on Android and iOS). The loans are processed in partnership with non-banking financial companies (NBFCs), making the process entirely paperless and hassle-free.
With just a few taps, users can:
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Check their eligible loan amount in real-time
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Lien-mark their mutual fund holdings digitally to the partnered NBFC
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Access an overdraft facility within minutes
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Repay flexibly without any foreclosure charges
The key highlight is the interest-on-utilized-amount-only feature. Unlike personal loans with fixed EMIs, LAMF allows users to borrow only when needed, repay as per their own schedule, and reuse the facility multiple times without fresh paperwork.
🧠 The Thought Behind the Offering
According to Mukesh Kalra, CEO of ET Money, the launch addresses a real and often overlooked gap in the financial journey of Indian investors:
“At ET Money, we’ve always focused on helping Indians build wealth through systematic, long-term mutual fund investing. But life isn’t always linear. Emergencies, aspirations, and unplanned expenses often force people to redeem their long-term assets prematurely. That disrupts compounding and slows wealth creation. With LAMF, we are giving our users the power to meet today’s needs without compromising tomorrow’s goals.”
This move comes at a time when mutual fund adoption in India is soaring, with the total AUM (Assets Under Management) nearing ₹60 lakh crore and SIP (Systematic Investment Plan) inflows hitting record highs every month. The retail participation wave has brought mutual funds into millions of households, and ET Money sees an opportunity to convert these passive investments into active financial tools for liquidity.
🔍 A Smart Credit Alternative
In a country where personal loans still attract double-digit interest rates, the LAMF product stands out as a low-cost, flexible, and smart credit alternative. ET Money’s offering ensures that:
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Borrowers don’t lose returns from their ongoing investments
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No credit history or salary slips are needed – eligibility is based on MF holdings
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Zero processing charges, zero foreclosure penalty
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Available 24×7, anytime and anywhere
The loans are likely to attract professionals, business owners, gig workers, and even retirees who may have idle mutual fund portfolios but prefer not to redeem for short-term needs.
🏦 From Investment-Only to Full-Stack Financial Platform
This move is also reflective of the broader evolution of fintech in India. ET Money’s transformation from a mutual fund investment app to a full-stack digital wealth platform aligns with the financial behaviours of a new generation of savers and investors who demand convenience, control, and customisation.
Through offerings like insurance, goal-based investing, retirement planning, and now collateral-backed lending, ET Money is building a one-stop financial ecosystem for urban India. The backing of 360 ONE, India’s largest wealth management company, adds credibility, financial muscle, and access to NBFC infrastructure.
🔮 The Road Ahead
ET Money’s LAMF launch is not just a product innovation—it signals a broader rethinking of how credit can be delivered in India. By tying credit access to mutual fund holdings, ET Money is helping investors mobilise idle financial assets, promoting financial discipline while providing real-time liquidity.
In the coming months, the company is expected to expand LAMF to cover more types of mutual fund categories, integrate dynamic interest rate calculators, and potentially offer pre-approved loan offers based on user behavior.
🔖 Key Takeaways:
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ET Money introduces instant digital loans against mutual fund holdings
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Loans processed via partner NBFCs through ET Money app
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Flexible overdraft, pay-as-you-use model with no fixed EMIs
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Mutual fund investments continue to compound during loan tenure
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Ideal for short-term liquidity without redeeming long-term assets
📌 Hashtags:
#ETMoney #LoansAgainstMutualFunds #LAMF #MutualFundLoans #FintechIndia #WealthCreation #DigitalCredit #SmartBorrowing #360ONE #InvestSmart #CompoundingContinues #FinancialPlanning #IndiaInvests #NBFCLoans #MutualFundsIndia #FintechInnovation #DigitalWealth #OverdraftFacility #SecuredCredit #FullStackFintech
