Choosing between a loan against mutual funds and a personal loan depends on your financial needs and goals. A loan against mutual funds offers lower interest rates and allows you to continue earning returns on your investments, making it ideal for those who need funds without liquidating assets. However, it requires you to pledge your mutual fund units as collateral.

On the other hand, a personal loan is unsecured, meaning you don’t need collateral, but it typically comes with higher interest rates.
It is suitable for individuals seeking quick, flexible financing without risking their investments. Understanding the differences and assessing your financial situation will help you make an informed decision.