The role of credit score in availing a loan against mutual funds is crucial. Lenders use the credit score to assess the borrower’s creditworthiness and ability to repay the loan. A higher credit score indicates a lower risk, often leading to more favorable loan terms, such as lower interest rates and higher loan amounts. Conversely, a lower credit score might result in higher interest rates or even rejection of the loan application. Therefore, maintaining a good credit score by managing debts responsibly and making timely payments is essential for borrowers seeking to avail a loan against their mutual fund investments.