Step-by-Step Guide: How to Get a Loan Against Mutual Funds on SLiQ

Getting a Loan Against Mutual Funds on SLiQ is fully digital — no branch visits, no paperwork, no physical signatures. Most applicants complete the process and receive funds within 6 hours.

Here is exactly what to expect at each step.

Before You Begin

Keep the following ready before starting the application:

That is all. No salary slips, no bank statements, no income proof required.

1Step 1: Check Eligibility

Visit sliqfin.com and enter your PAN number.

SLiQ scans the portfolio across AMCs and RTAs — CAMS and KFintech — and displays the eligible credit limit in seconds. This step shows which mutual fund folios qualify, how much can be borrowed against each, and the applicable interest rate.

Checking the credit limit is free and does not affect the CIBIL score. No commitment is required at this stage.

2Step 2: Choose Securities

Select which mutual fund folios to pledge as collateral.

The full portfolio does not need to be pledged — only the folios required to unlock the desired credit limit. The remaining holdings stay completely unrestricted and can be redeemed or switched at any time.

Funds that are eligible to pledge include most open-ended equity, debt, and hybrid mutual fund schemes from SEBI-registered AMCs. ELSS units within the 3-year lock-in period and closed-end schemes are not accepted.

3Step 3: KYC Verification

Complete a quick digital KYC using the Aadhaar-linked mobile number. An OTP is sent for verification — the process takes approximately 2 minutes.

After KYC, the loan agreement is presented digitally. All key terms — interest rate, credit limit, processing fee, and repayment conditions — are disclosed upfront before signing. The agreement is signed electronically.

No physical documents. No printouts. No courier of papers.

4Step 4: Digital Pledge

SLiQ coordinates the lien marking request with CAMS, KFintech, or MF Central on the borrower's behalf. The lien is placed on the selected mutual fund units via OTP confirmation.

A lien is a digital hold — the units remain in the folio, continue earning NAV appreciation, and the SIPs continue to run. The only restriction is that the pledged units cannot be redeemed or switched until the loan is fully repaid.

Once the lien is confirmed, the credit limit goes live. Withdraw any amount up to the limit — directly to the registered bank account. Funds are credited within 6 hours of completing the process.

How Withdrawals and Repayments Work

The credit limit functions as a revolving overdraft:

• Withdraw any amount anytime — minimum Rs 10,000
• Interest is charged only on the amount withdrawn, calculated daily
• Repay anytime — zero prepayment or foreclosure charges
• Each repayment immediately restores the available credit limit
• Redraw without reapplying — the credit line stays active for up to 36 months

Closing the Loan

To close the loan, repay the full outstanding principal and any accrued interest. SLiQ charges zero foreclosure charges.

Once the outstanding balance is cleared, raise a lien release request through the SLiQ platform. CAMS or KFintech releases the lien — the pledged units are fully free again, typically within the same business day.

Quick Summary

Disclaimer: Eligibility, interest rates, and processing timelines are indicative and may vary by lender and fund type. This article is for informational purposes only. Please read all scheme-related documents carefully before pledging.