Tata Capital has launched ‘Loan Against Mutual Funds’ (LAMF), an end-to-end digital offering. Customers can avail quick and hassle-free loans ranging from Rs 5 lakhs to Rs 20 million.
Tata Capital’s digital loan offering is provided against a wide range of equity and debt schemes across mutual funds. Customers can avail the loan amount by marking a lien on the mutual fund units, which are managed by various asset management companies. 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.
LAMF is best suited for customers to meet their personal or business funding requirements. Most importantly, the customer continues to hold the mutual funds portfolio and can enjoy its benefits as well. The customer does not have to redeem the portfolio and pays interest only on the applied loan amount.
The benefits of Digital LAMF are many. Customers can apply for a loan as an overdraft facility or as a term loan. Auto renewal facility is available for tenure exceeding one year (subject to review of the mutual fund portfolio). The onboarding journey is completed within minutes. The service portal comprises features for disbursement, drawdown, additional pledging, and de-pledging.