A loan against mutual funds provides quick liquidity without redemption. Eligibility typically requires holding ELSS or open ended equity and debt funds in demat or folio, with lenders extending up to 60 percent of NAV depending on scheme quality. The process involves a simple application, KYC, verification of folio or demat holdings and creation of a lien or pledge instruction. Documents usually include ID proof, address proof and mutual fund account statements. Disbursal is fast, often within 24 to 72 hours, and interest rates are competitive versus unsecured credit.