Can You Prepay a Loan Against Mutual Funds?
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Yes, most lenders allow prepayment of a loan against mutual funds. This can help you save on interest costs as you are charged interest only on the outstanding amount. Prepayment terms vary by lender, and some may impose a nominal prepayment penalty. It is advisable to check the terms and conditions before opting for prepayment. A loan against mutual funds offers flexibility, enabling borrowers to repay early if their financial situation improves. This feature makes it a convenient and efficient option for managing short-term cash requirements without liquidating investments.