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You can repay the loan anytime by transferring the amount from your bank account. Once the loan is fully repaid, your mutual funds are released back to you.

To get a loan against ELSS (Equity Linked Saving Scheme) funds, you’ll first need to check if your ELSS units are past the 3-year lock-in period. If they are, you can apply just like a regular loan against mutual funds—by pledging the eligible units through your lender’s platform.

No, once your mutual funds or shares are pledged for a loan, you can’t withdraw or sell them until the loan is repaid. They’re temporarily locked, but still remain in your name.

Generally, mutual fund units must be held in a demat account and be from approved AMCs. ELSS funds can’t be pledged during the lock-in period. Also, the loan amount depends on the type and value of funds being pledged.

To close the loan, just repay the full outstanding amount. Once that’s done, your mutual funds will be unpledged and back under your full control. Some platforms do this automatically within a day or two after repayment.

Most lenders don’t rely heavily on credit scores for loans against mutual funds since your investments act as security. A basic credit check may still happen, but it usually doesn’t affect your approval if your mutual funds are eligible.

Yes, you may still be eligible. Since this is a secured loan backed by your mutual funds, lenders are generally more flexible. However, frequent or serious past defaults might impact approval or terms.

No, you won’t lose ownership. When you pledge mutual fund units for a loan, you’re only creating a lien in favor of the lender—you still remain the legal owner. The units stay in your name, continue to earn returns, and once the loan is repaid, the lien is removed and full control is restored.

Pledged units cannot be redeemed or switched while the loan is active. However, they remain invested and can still generate market-linked returns. You get access to liquidity – but with some temporary restrictions on fund movement.

A Loan Against Shares can be availed by salaried individuals, self-employed professionals, businesses, and Non-Resident Indians (NRIs) (through an NRO Demat account). The primary requirement is to hold shares or eligible securities in a Demat account. Applicants must also meet standard KYC norms and fall within the lender’s approved age bracket, usually between 18 to 75 years.