Mirae Asset Financial Services, an NBFC and subsidiary of Mirae Asset Group, will offer loan against mutual fund units. The company has introduced an online mobile application through which consumers can avail Loan Against Mutual Fund (LAMF) facility within minutes. The mobile app, which can be installed directly from the Android or IOS app store, is one of the first end-to-end digital and paperless LAMF offering.

Customers can avail of instant LAMF limit from ₹50,000 to ₹3 crore by lien marking their mutual fund investments. Customers can lien mark from the list of approved equity and debt mutual funds across multiple asset management companies serviced by both Registrar and Transfer Agents — CAMS and KFintech.

The loan will be made available in the form of an overdraft facility. Customers can withdraw the required amount via mobile app whenever required. On withdrawal, the amount will directly be credited to the customer’s bank account the same day.

Users can apply for the LAMF limit, withdraw and repay the required amount, foreclose the loan account and complete many other activities online via the mobile application.

‘Access to funds’

Krishna Kanhaiya, Chief Executive Officer, said most investors redeem their investments done for long-term goals to meet short-term needs such as managing liquidity in business, house renovation or medical emergencies which is fundamentally incorrect, and LAMF will provide investors access to funds whenever needed.

Swarup Mohanty, Director, Mirae Asset Global Investments (India), said with digital LAMF as the first product, the aim is to help customers manage their finances better.

Related Topics
comment COMMENT NOW