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Can I take a loan against my mutual fund investment?

Dhirendra Kumar tells how is it possible to take an overdraft against your mutual fund investment

I invested Rs 40,000 in SBI Dual Advantage Fund. Can I avail a loan against it?
-Vishnu

Yes. This is an additional facility given by SBI which is not easily available with other fund houses. If you have invested in mutual fund schemes of SBI and hold an SBI bank account too, you can request and avail an overdraft facility of up to 90 per cent of the invested amount. You don't have to take a loan separately. It works like a cash credit facility. You can write cheques from your account up to this amount and return when you have money. It is a wonderful facility to fulfill short term emergency cash requirement.

For more details, click here.

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