HDFC launches instant loan against mutual funds

The loan can be availed through the HDFC Bank website in three easy steps.

GKNN
Srinagar, Publish Date: May 26 2018 12:31AM | Updated Date: May 26 2018 12:31AM
HDFC launches instant loan against mutual fundsFile Photo

HDFC Bank has launched digital loan against mutual funds (LAMF), in partnership with transfer agent CAMS. 

Customers can now pledge mutual fund assets online and get overdraft limit set in their account in under 3 minutes, a spokesperson of the HDFC said. The loan can be availed through the HDFC Bank website in three easy steps.

With this product, customers can leverage their mutual fund (MFs) portfolio to avail funds for any contingencies or emergencies without liquidating their investments or stopping their regular investment plans/SIPs. Digital loan against mutual funds is available for resident Indians and for portfolios that are individual holdings.

“The bank has collaborated with CAMS, a transfer agent for mutual funds to create a seamless customer experience. It is open to all HDFC Bank customers holding assets in at least one of the ten mutual fund houses registered with the CAMS. These ten fund houses together constitute about 60 percent of the total assets under management of the industry,” the spokesperson said.

After the success of HDFC Bank’s industry first offering ‘Digital Loans against Securities’ launched last year, the bank has now automated the entire process for ‘Digital Loans against Mutual Funds’, he added. “Today, a customer has to wait for 5-6 days to avail a loan against mutual funds.


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