Tata Capital Limited, the flagship financial services company of the Tata Group, on Tuesday announced the launch of the industry’s first end-to-end digital offering ‘Loan Against Mutual Funds’. Customers can avail loans ranging from ₹from 5 lakhs ₹2 crores.
how to take advantage
Tata Capital’s digital loan offering is provided in Mutual Funds against a wide range of equity and debt schemes. Clients can avail the loan amount by marking a lien on the mutual fund units managed by various asset management companies. Loan Against Mutual Funds 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.
As per the AMFI report, the AUM of the Indian mutual fund industry has grown from ₹15.18 trillion as on July 31, 2016 till date. ₹35.32 trillion July 31, 2021. Considering the exponential growth in this investment category, Loan Against Mutual Funds is best suited for clients to meet their personal or business funding requirements. The customer also retains the mutual fund portfolio and can enjoy its benefits. According to the release issued by Tata Capital, it does not need to encash the portfolio and pays interest only on the applicable loan amount.
main advantages
> End-to-end online journey, from onboarding to disbursement
> Loan can be applied as an overdraft facility or as a term loan
> Auto-renewal facility available for more than one year tenure (subject to review of Mutual Fund portfolio)
> The onboarding journey is completed in minutes
> Online Lien Marking of Mutual Funds through CAMS API
The service portal includes features of Disbursement, Withdrawals, Extra Pledge and Pledge.
> Online execution of documents
> Client gets the benefit of growth and dividends received from the MF portfolio
Abunty Banerjee, Chief Digital Officer, Tata Capital, said, “Mutual Funds as an investment category have shown tremendous growth over the past decade and continue to gain momentum. Moreover, this product enables customers to maintain control over their portfolios. This is in line with our strategy to continuously introduce innovative products that provide convenience to our customers.”
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