Tata Capital launches ‘Loan Against Mutual Funds’
Tata Capital, the flagship financial services company of the Tata Group, has announced the launch of the industry’s first end-to-end digital offering, ‘Loan Against Mutual Funds’ (LAMF). Customers can avail quick and hassle free loans ranging from Rs 5 lakh to Rs 2 crore.
Tata Capital’s digital loan offering is provided in Mutual Funds against a wide range of equity and debt schemes. Customers can avail loan amount by marking lien on mutual fund units managed by various asset management companies. Backed by technology and analytics, LAMF is a personalized product to meet the diverse funding needs of the client. The loan amount is customized based on the value of the units in the mutual fund folio and tenure.
“Mutual Funds as an investment category have shown tremendous growth over the past decade and continue to gain momentum. Our latest digital product allows customers to easily meet their fund requirements in a seamless manner while still maintaining control over their portfolio. This is in line with our strategy to continuously introduce new products that provide convenience to our customers,” said Abunty Banerjee, Chief Digital Officer, Tata Capital.
As per the AMFI report, the AUM of the Indian mutual fund industry has grown from Rs 15.18 trillion on July 31, 2016 to Rs 35.32 trillion as on July 31, 2021, a growth of more than 2 times in a span of 5 years. Given the exponential growth in this investment category, LAMF is best suited for clients to meet their personal or business funding needs. Most importantly, the client continues to hold the mutual fund portfolio and can enjoy its benefits as well. The client is not required to redeem the portfolio and pays interest only on the applicable loan amount.
Key Benefits of Tata Capital’s LAMF:
* End-to-end online travel – onboarding to delivery
* The loan can be applied as an overdraft facility or as a term loan
* Auto renewal facility available for more than one year period (subject to review of mutual fund portfolio)
* Boarding trip is completed in minutes
* Online Lien Marking of Mutual Funds through CAMS API
* The service portal includes features of disbursement, withdrawal, additional pledge and pledge
* online execution of documents
* The client gets the benefit of growth and dividends derived from the MF portfolio
Customers applying for Loan Against Mutual Funds can simply login to the website of the Company.
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