Virtual Credit Line Setup

A Loan Against Mutual Fund is no longer a product that requires branch visits, physical paperwork, or days of waiting. On Stashfin, the entire process — from discovering your eligible portfolio to receiving your first withdrawal in your bank account — happens digitally, often within a single session on your smartphone. This guide walks through each step of the setup process so that first-time LAMF users know exactly what to expect.

Step One — Check Your Eligibility and Portfolio Value

The first step is understanding what you can borrow. Open the Stashfin app and navigate to the Loan Against Mutual Fund section. You will be prompted to link your mutual fund portfolio through the Account Aggregator network or by providing your registered PAN and mobile number to discover folios held with CAMS or KFintech.

Once your portfolio is fetched, the system displays your eligible funds — those in the approved category list — along with the applicable Loan to Value ratio for each fund type. The total eligible credit line is calculated based on the current NAV of your eligible units multiplied by the applicable LTV. Review this figure and decide how much of your eligible limit you want to activate.

Step Two — Complete KYC Verification

If you are a new Stashfin user, you will need to complete a KYC verification process. This is handled digitally through Aadhaar-based eKYC or a short video KYC process depending on your profile. You will need your Aadhaar number and mobile number linked to Aadhaar for eKYC, or a device with a working camera for video KYC. The verification typically takes a few minutes.

For existing Stashfin users with an active KYC on file, this step is skipped entirely and the process moves directly to pledge setup.

Step Three — Select Units to Pledge

Once your portfolio is visible and your KYC is complete, select the specific mutual fund folios and the number of units you wish to pledge as collateral. You do not have to pledge your entire portfolio — you can select specific schemes and quantities that generate the credit line you need while leaving other units free and unpledged.

For a conservative setup, pledge units that represent a comfortable fraction of your portfolio while maintaining unpledged units as a buffer. The system shows you in real time how much credit line is being generated by your pledge selection.

Step Four — Consent to Lien Marking

After selecting your units, you will be asked to confirm the pledge through an OTP-based consent process. An OTP is sent to the mobile number registered with your mutual fund folio — this is typically the same number registered with CAMS or KFintech. Entering the OTP constitutes your consent to the lien marking request being submitted to the RTA.

The lien marking request is then submitted digitally to CAMS or KFintech. For most digital pledges, the lien is marked within minutes to a few hours depending on the processing queue at the RTA.

Step Five — Sign the Loan Agreement

Once the lien is confirmed, you will be asked to review and sign the loan agreement digitally. This is done through an e-sign process using your Aadhaar OTP. Read the key terms — interest rate, margin thresholds, margin call procedures, and renewal terms — before signing. Keep a copy of the signed agreement for your records.

Step Six — Credit Line Activation

With the pledge confirmed and the agreement signed, your LAMF credit line is activated. You can see the available credit limit, the pledged collateral details, and the current margin status in your Stashfin app dashboard. The credit line is now live and ready to use.

Step Seven — Make Your First Withdrawal

To draw funds from your credit line, navigate to the withdrawal section in the Stashfin app. Enter the amount you want to withdraw — up to your available limit — and confirm the destination bank account. The transfer is processed through IMPS or NEFT and the funds are credited to your bank account typically within minutes.

From this point, your LAMF credit line functions like a financial instrument you can use as needed — draw when required, repay when cash flow allows, and monitor your collateral position through the app at any time.

After Setup — Managing Your Credit Line

Once your virtual credit line is active, monitor your collateral value regularly through the Stashfin app. The app displays your live LTV ratio, outstanding balance, available credit, and margin buffer. Set up notifications for when your margin buffer approaches the threshold so you have advance warning if market movements require attention.

Repay drawn amounts progressively as your income allows to keep the outstanding balance and interest cost low. The credit line renews annually — Stashfin will notify you ahead of the renewal date so you can complete any required documentation to maintain continuity of the facility.

Loan Against Mutual Fund is subject to applicable interest rates and credit assessment. Mutual fund units pledged as collateral are subject to market risks. Please read all loan-related documents carefully.