HDFC Bank Ltd has launched Digital Loans Against Mutual Funds (LAMF) in partnership with Computer Age Management Services (CAMS), India’s premier Mutual Fund Transfer Agency, serving over 60% of assets of the industry.
Billed as an industry-first innovation, apart from being totally paperless, the key benefits of Digital LAMF include instant availability of money in an account within minutes.
Customers can now pledge mutual fund assets online and get overdraft limit set in their account within 3 minutes. They can now avail of this product through the HDFC Bank website in three easy steps.
“Digital Loans against Mutual Fund takes customer’s convenience, flexibility and access to never- before levels. With this product, we hope to reach out to customers in tier-2 and tier-3 markets and bring them into the digital lending fold. In case of emergencies, customers will not be forced to liquidate assets at less than optimal market conditions. They can instead design their own loan to tide over the cash crunch,” said Arvind Kapil, Group Head – Unsecured Loans, Home, and Mortgage Loans, HDFC Bank during a media event.
Launched initially in collaboration with 10 Asset Management Companes (AMC), including Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund, Tata mutual fund etc, the other salient features of LAMF include its availability against both Debt and Equity Mutual Funds and its provision for application of new loans and enhancements that can be done online.
As per the bank, first-time borrowers without a credit history can also access LAMF loans and interest is applied only on the amount utilised.