Tata Capital’s digital loan offering is provided against equity and debt mutual fund schemes across fund houses. Customers can avail the loan amount by marking a lien on the mutual fund units which are managed by various asset management companies, stated a Tata Capital press release. “Backed by technology and analytics, LAMF is a personalized product to meet the diverse fund requirements of the customer. The loan amount is customized based on the value of the units in the mutual fund folio and tenure,” stated the press release.
The customer is not required to redeem the portfolio and pays interest only on the applied loan amount, stated the press release.
Customers can apply for Loans Against Mutual Funds by logging into: https://www.las.tatacapital.com/online/loans/las/apply-now-las-loan
According to the Tata Capital press release, these are some of the key benefits of the Digital LAMF:
- End- to – end online journey: onboarding to disbursement
- Loan can be applied as an overdraft facility or as a term loan
- Auto renewal facility available for tenure exceeding one year (subject to review of the mutual fund portfolio)
- Online lien marking of Mutual Funds via CAMS API
- Service portal comprises features for disbursement, drawdown, additional pledging and de-pledging.
- Online execution of documents
- Customer can get benefits of growth and dividend received from the MF portfolio
What is loan against mutual funds?
Mutual fund investors can avail credit against their mutual fund investments. Loan against mutual fund units is in the form of an overdraft facility and interest is charged only on the amount availed as credit.