Tata Capital Ltd today announced the launch of ‘Loan Against Mutual Funds’ (LAMF). Under this absolutely digital initiative, consumers will be capable to get speedy and hassle-no cost loans ranging from Rs 5 lakh and Rs 2 crore against their mutual fund deposits.
Tata Capital mentioned that the digital loan providing is supplied against a wide variety of equity and debt schemes across mutual funds. Customers can avail the loan quantity by marking a lien on the mutual fund units which are managed by many asset management organizations.
The loan quantity will be customized based on the worth of the units in the mutual fund folio and tenure.
As per AMFI, the Indian Mutual Fund Industry’s AUM has grown from Rs 15.18 trillion as on July 31, 2016 to Rs 35.32 trillion as on July 31, 2021, more than a 2-fold improve in a span of 5 years. Given the exponential development in this investment category, LAMF will be ideal suited for consumers to meet their private or business enterprise funding specifications.
The consumer availing LAMF will continue to hold his mutual funds portfolio and get pleasure from its positive aspects as properly. The consumer would not be necessary to redeem their portfolio. They will have to spend interest only on the applied loan quantity.
Benefits
- End-to-finish on the web journey – onboarding to disbursement
- Loan can be applied as an overdraft facility or as a term loan
- Auto-renewal facility offered for tenure exceeding one year (topic to evaluation of the mutual fund portfolio)
- Onboarding journey is completed inside minutes
- Online lien marking of Mutual Funds through CAMS API
- Service portal comprises features for disbursement, drawdown, further pledging and de-pledging.
- Online execution of documents
- Customer can get pleasure from the positive aspects of development and dividend received from the MF portfolio
Commenting on the launch of LAMF, Abonty Banerjee, Chief Digital Officer, Tata Capital mentioned, “Mutual funds as an investment category has shown tremendous growth over the last decade and continues to gain momentum. 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. This is in line with our strategy of constantly offering innovative products which offer customer convenience.”