Lend Against Mutual Funds with ConfidenceThe Loan Management System Built for LAMF
Lending against mutual funds works best when your team is not chasing NAVs by hand. Our Loan Against Mutual Funds Management System takes care of that. Pledging, valuation, drawing power, margin alerts and billing all sit in one platform, so banks, NBFCs and fintechs can launch LAMF faster, keep every loan covered as markets move and spend less time on manual work.
Get a LMS for LAMF in 45 Days – Book a DemoSee how automated NAV monitoring, drawing power, pledging and margin alerts work in one platform.
Collateral coverage
Covered- Collateral value (NAV × units)
- ₹24,00,000
- LTV set by lender
- 75%
- Drawing power
- ₹18,00,000
- Outstanding
- ₹12,40,000
10 equity-backed loans under margin
Borrowers notified: top up units, repay part or accept liquidation.
What you get is a loan management system that runs on live data. Disbursals move quicker, errors drop and risk teams see exposure as it changes, not a day later. Every lender has its own credit policy, so you can explore the platform and shape it around your approved funds, LTV rules and workflows. Here is what it does, how it works, and how you can make it your own.
What a Loan Management System Actually Does
A loan management system runs a loan from disbursal to closure, covering schedules, interest, repayments, collections and accounting. Some call it loan management software, others loan management system software. Same thing.
Running on the cloud, a loan management system online also means adding a new fund category or LTV rule does not wait on a server upgrade.
Get in TouchStatic rules
Unsecured lending can get away with static rules. A spreadsheet does not know a fund’s value dropped 4% overnight and ten borrowers are now under margin.
Live data
Secured lending against a market linked asset cannot. An online loan management system gives credit, risk and operations one shared, live view instead of three teams working off three different numbers.
Understanding Loan Against Mutual Funds in India
The borrower pledges mutual fund units as collateral and borrows against them, but never sells the units. Ownership stays with the borrower and the investment keeps compounding. The pledged units are marked with a lien through the registrar (CAMS or KFintech) or a depository, so they cannot be redeemed until the loan is cleared.
Lenders typically offer this as a term loan with a fixed schedule, or an overdraft where the borrower pays interest only on what they draw. The lending limit comes from the fund’s NAV multiplied by a loan to value ratio, and equity funds usually carry a lower LTV than debt funds because equity NAVs move more. This is why NAV matters here, a fund’s per unit value is recalculated daily based on what its holdings are actually worth, so drawing power needs to be just as current. AMFI data continues to show mutual fund AUM growing across India, which only widens the pool of borrowers holding this kind of collateral.
Term loan
A fixed repayment schedule.
Overdraft
Interest only on what the borrower draws.
The borrower picks how they repay
Borrower’s choiceInterest-only EMI
Pay just the interest each month; principal is repaid later or at closure.
EMI
A regular EMI of principal plus interest that pays the loan down over its term.
Discuss your lending model, LTV policies and collateral management requirements with our team. Talk to us →
Built Specifically for Collateral Backed Lending
Many platforms bolt on a “loans against securities” module as an afterthought. Ours is not built that way. It is designed around one job: managing collateral that changes value daily, covering approved securities, pledge creation, valuation, drawing power, alerts, invocation and release.
As an API led loan management platform, it connects to your loan origination system, the registrars handling lien marking, your payment gateway and NAV data feeds. Lenders who want origination and ongoing management together can run both on one connected stack instead of managing a handoff between two systems.
LAMF Platform
Pledge · Valuation · Drawing power · Alerts · Release
Key Features of Loan Management System Online
Approved securities with minimum and maximum LTV
Lenders define which mutual funds qualify and set LTV limits by category, so an equity fund and a debt fund are never priced the same way.
Real time NAV updates and daily drawing power
NAV feeds refresh automatically and drawing power recalculates every day, so there is no lag between what a fund is worth and what the system believes it is worth.
Automated shortfall alerts
When collateral value dips below the required margin, both sides are notified immediately with clear next steps: top up units, repay part of the loan, or accept liquidation.
Pledge, invocation and release management
The full lien lifecycle lives in one workflow, from creation through invocation on default to release once the loan is repaid.
Interest only billing and collateral reporting
Borrowers are billed only on what they have drawn, and holding reports go down to the ISIN level for clean audits and reconciliation.
See every feature against your own credit policy
Your approved funds, LTV rules and workflows, shaped around your book.
Get a Product DemoHow This Loan Management System Software Works, Step by Step
- 01The customer applies and completes eKYC.
- 02Eligible funds are selected from the lender’s approved list.
- 03The lien is marked through the registrar or depository.
- 04The credit limit is set from NAV and the applicable LTV.
- 05The customer draws funds, repays, and is billed only on the amount used.
- 06The system tracks margin daily and raises alerts on any shortfall.
- 07The lien is released once the loan is closed.
What used to mean back and forth calls with a registrar now happens inside one workflow. Less manual chasing, fewer errors to catch later.
Equity fund pledge · step 6
Shortfall ₹1,20,000- Collateral value (NAV × units)
- ₹18,40,000
- LTV set by lender
- 50%
- Drawing power
- ₹9,20,000
- Outstanding
- ₹10,40,000
Collateral below required margin
Today’s NAV moved drawing power below the amount drawn. The borrower picks a way back.
Step 7: lien released
Loan closed. The units are free to redeem.
Illustrative figures.
Why Lenders Choose Believ-In Tech for Online Loan Management System
Calling something the best loan management software for this product comes down to specifics: how accurate the valuation engine is, how fast shortfall alerts reach a borrower, how audit ready the system is, and how easily it plugs into an existing core system.
Our platform runs as a SaaS deployment, so a bank rolling out LAMF at scale and a smaller NBFC testing the product both get the same reliability. Lenders who have implemented it point to faster go live timelines and support that stays involved past launch.
Discuss Your RequirementsReporting and Compliance
At scale, visibility across the whole book matters as much as any single loan. Our loan portfolio management software capability gives lenders a live view of exposure by fund category, collateral coverage, delinquency trends and concentration risk, backed by full audit trails and accounting entries.
Collateral coverage
1.42×
Loans under margin
10
Exposure, equity funds
38%
Exposure, debt funds
62%
Illustrative portfolio view.
RBI’s stance on loan to value ceilings for lending against securities is not static, and norms for banks differ from those for NBFCs. Rather than quote a figure that may date quickly, our system lets LTV rules be updated centrally the moment regulation changes, so every new loan stays compliant without a manual policy rewrite.
Who This Loan Management Platform Is Built For
Whether you are searching for a loan management system India solution or a loan management system in India that understands RBI and SEBI’s framework specifically, this is built around that context.
Banks
Policy driven LTV control
Banks need policy driven LTV control and audit ready records.
NBFCs
Speed that grows with the book
NBFCs need a system fast enough to keep pace with demand and flexible enough to grow with their book.
Fintechs
Clean APIs to build on
Fintechs embedding LAMF into their own journeys need clean APIs to build on.
Ready to Modernise LAMF Lending with Believ-In Technologies?
If your process still depends on manual NAV checks and email chains with a registrar, you are carrying operational risk a purpose built system removes on day one.
- Built specifically for lending against mutual funds, not adapted from a generic loans module
- API led architecture connecting to your origination system, registrars and NAV feeds
- Implementation support that stays involved through go live and beyond
- Book a walkthrough to see the platform against your own loan book
Talk To Our Expert Team
Discuss your lending model, LTV policies and collateral management requirements.
Frequently Asked Questions
What is a loan against mutual funds management system?
A loan management platform built to manage loans where mutual fund units act as collateral, handling pledging, valuation, monitoring and repayment in one place.
Which loan types does it support?
Term loans with a fixed schedule and overdraft facilities charged only on the amount drawn.
How are NAV and drawing power updated?
NAV refreshes through automated data feeds, and drawing power recalculates daily based on the latest value.
How does margin shortfall monitoring work?
If collateral value falls below the required margin, both sides are alerted immediately, with options to repay, pledge more units or accept liquidation.
Can lenders set their own approved fund list and LTV?
Yes, lenders define which mutual funds qualify and set LTV limits by scheme category, in line with their own credit policy.
Is the platform scalable and compliant with Indian regulations?
It runs as a SaaS deployment that scales from a single NBFC to a full bank rollout, with LTV rules updated centrally as RBI norms evolve.
Which institutions can use this loan management system software?
Banks, NBFCs and fintechs, whether running LAMF standalone or embedded into an existing lending journey.
Ready to Modernise LAMF Lending with Believ-In Technologies?
See how Believ-In Technologies can automate LAMF operations, from pledge creation and NAV monitoring to drawing power, shortfall alerts and collateral release.