Loan against mutual funds: Interest rates of SBI, HDFC Bank, ICICI Bank, others

Investors can borrow money against their mutual fund units. This loan works like an overdraft. Interest applies only to the borrowed amount. Banks like SBI, ICICI, and HDFC offer this facility. Interest rates vary from approximately 8% to 11.5%. NBFCs also provide these loans. Borrowers can compare rates and EMIs before choosing a lender.