{"id":15543,"date":"2025-02-12T12:47:45","date_gmt":"2025-02-12T07:17:45","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=15543"},"modified":"2026-01-19T15:29:27","modified_gmt":"2026-01-19T09:59:27","slug":"understanding-monthly-instalments-on-lamf-in-1-minute","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/understanding-monthly-instalments-on-lamf-in-1-minute\/","title":{"rendered":"Understanding monthly instalments on LAMF in 1 minute"},"content":{"rendered":"\n<p><strong>Q: What is the monthly instalment on a Rs. 1 lakh loan against mutual funds (LAMF)?<\/strong><\/p>\n\n\n\n<p>In LAMF, borrowers pay only the monthly interest on the loan amount. For a Rs. 1 lakh loan, if the annual interest rate starts 9.99%, which results in a monthly interest payment of Rs. 833. This is lower than traditional loans, where both interest and principal are paid monthly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Monthly payments for different loan amounts<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Loan amount<\/strong><\/td><td><strong>Interest rate<\/strong><\/td><td><strong>Monthly installment<\/strong><\/td><\/tr><tr><td>Rs. 25,000<\/td><td>9.99%<\/td><td>Rs. 208<\/td><\/tr><tr><td>Rs. 50,000<\/td><td>9.99%<\/td><td>Rs. 416<\/td><\/tr><tr><td>Rs. 75,000<\/td><td>9.99%<\/td><td>Rs. 624<\/td><\/tr><tr><td>Rs. 1,00,000<\/td><td>9.99%<\/td><td>Rs. 833<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>Note: For illustration purposes only. The borrower also has to repay the principal amount within the 3 years, which is not a part of monthly payments<\/em>.<\/p>\n\n\n\n<p><strong>Q:<\/strong>&nbsp;<strong>Does the monthly payment include the principal amount?<\/strong><\/p>\n\n\n\n<p>No, the monthly payments cover only the interest. The principal repayment can be done at any time within the 3-year tenure.<\/p>\n\n\n\n<p><strong>Q: Can I make partial principal repayments?<\/strong><\/p>\n\n\n\n<p>Yes, you have the flexibility to make partial principal repayments during the 3-year period. Each principal repayment reduces the interest obligation. For example, if you have taken a loan against mutual funds for <strong>Rs. 1 lakh<\/strong> in January, your monthly interest payment would be around <strong>Rs. 833<\/strong>. If you repay <strong>Rs. 50,000<\/strong> in February, your outstanding principal drops to <strong>Rs. 50,000<\/strong>, and from the next month onward, your monthly interest payment is halved to around <strong>Rs. 416<\/strong>.<br>You can consistently reduce the principal amount at any point, thereby lowering your monthly payments.<\/p>\n\n\n\n<p><strong>Q: Are there prepayment charges?<\/strong><\/p>\n\n\n\n<p>No, there are no prepayment charges or foreclosure charges for early repayments of the principal amount.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/loan-against-mutual-funds\">Apply for a Loan Against Mutual Funds now! <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q: What is the monthly instalment on a Rs. 1 lakh loan against mutual funds (LAMF)? In LAMF, borrowers pay only the monthly interest on the loan amount. For a Rs. 1 lakh loan, if the annual interest rate starts 9.99%, which results in a monthly interest payment of Rs. 833. This is lower than<\/p>\n","protected":false},"author":137,"featured_media":15560,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1754],"tags":[],"acf":[],"modified_by":"Ayushi Gangwar","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2025\/02\/LAMF_Annnouncement.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/15543"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/137"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=15543"}],"version-history":[{"count":10,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/15543\/revisions"}],"predecessor-version":[{"id":17679,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/15543\/revisions\/17679"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/15560"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=15543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=15543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=15543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}