CRED has launched CRED Cash+, a digital credit line that lets users borrow against their mutual fund holdings—without redeeming them. This innovative offering provides liquidity while investments continue to grow, helping members stay financially agile without compromising long-term wealth creation.

With interest rates starting at 8.99%, CRED Cash+ is a cost-effective alternative to personal loans or redemptions. The fully digital and paperless process allows users to pledge open-ended equity, debt, or hybrid mutual funds held with RTAs like CAMS and KFintech, without a minimum AUM requirement.

Members retain ownership of pledged units and continue earning dividends and capital gains, thanks to lien marking facilitated by RTAs. The platform uses RBI-compliant Loan-to-Value (LTV) ratios and recommends an optimized mutual fund basket to maximize eligibility while maintaining diversification.

Funds can be redrawn multiple times, with no prepayment or foreclosure charges, offering flexibility and efficiency. By avoiding premature redemptions, members also reduce tax burdens and improve their credit mix, positively impacting their credit score.

Historically limited to HNIs through offline channels, Loans Against Mutual Funds (LAMF) have been underutilized by retail investors. With CRED Cash+, the aim is to democratize access by making LAMF more visible, digital, and inclusive.

“CRED Cash+ empowers members to unlock liquidity today while their investments continue to grow for tomorrow.”

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