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Tata Capital has launched ‘Loan Against Mutual Funds’ (LAMF), whereby customers can digitally avail loans ranging from ₹5 lakh and ₹2 crore.
The non-banking finance company, in a statement, said the end-to-end (onboarding to disbursement) digital loan offering, which is quick and hassle free, is provided against a wide range of equity and debt schemes across mutual funds.
Customers can avail the loan as an overdraft facility or as a term loan by marking a line on the mutual fund units, which are managed by various asset management companies, it added.
“Auto renewal facility available for tenure exceeding one year (subject to review of the mutual fund portfolio)…Service portal comprises features for disbursement, drawdown, additional pledging and de-pledging,” Tata Capital said.
Backed by technology and analytics, LAMF is a personalised product to meet the personal or business funding requirements of the customer, according to the statement.
The loan amount is customised based on the value of the units in the mutual fund folio and tenure.
Referring to the more than two-fold increase of the mutual fund industry’s assets under management (AUM) in a span of five years, the NBFC emphasised that the customer continues to hold the mutual funds portfolio and can enjoy its benefits (of growth and dividend received from the MF portfolio).
Abonty Banerjee, Chief Digital Officer, Tata Capital said, “…Our latest digital product gives customers an opportunity to easily meet their fund needs in a seamless manner, even while retaining control over their portfolio.”
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