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Calculators

Borrow against your funds, or redeem them?

Put in the amount and how long you need it. We compare what each option really costs.

₹
mo
%
₹
%

What the redeemed money would have earned had it stayed in.

%

Check your capital gains statement. 33% means ₹1 of every ₹3 is profit.

Equity LTCG: 12.5% above ₹1.25 lakh a year.

₹

These use up the yearly exemption first.

%

Verdict

Borrowing costs ₹16,340 less over 9 months.

Loan against funds

Cheaper

₹47,250

Interest
₹47,250
Processing fee
₹0

Redeem units

₹63,590

Tax
₹9,518
Exit load
₹0
Lost growth
₹54,072

Redeeming assumes you sell ₹6.1 lakh so that ₹6 lakh reaches your account after tax and exit load. Loan interest is simple interest on the full amount for the whole period.

How we calculate

  • Loan cost is simple interest on the full amount for the whole period, plus any processing fee.
  • Redemption cost is tax, exit load and the growth the redeemed money would have earned over the same period.
  • Tax uses equity mutual fund rates for FY 2025-26: 12.5% on long-term gains above ₹1.25 lakh a year, 20% on short-term gains. Debt fund gains are taxed at your slab and are not modelled here.
  • A loan only makes sense if repayment is certain. If markets fall, the lender can ask for more security.
  • Illustrations only, based on the assumptions you enter. Returns are not guaranteed. Mutual fund investments are subject to market risks; read all scheme related documents carefully.

Numbers look tight? That is what the review is for.

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