Private lender ICICI Bank has launched a facility that enables retail customers to avail loan of up to Rs1 crore instantly by pledging their holdings in both debt and equity schemes of mutual funds. This digital and paperless facility will empower the customers to avail this loan as an overdraft (OD) within few minutes, without visiting a branch and submitting physical documents.
Titled as, ‘Insta Loans against Mutual Funds’, the facility has is unveiled in association with ‘Computer Age Management Services’ (CAMS), leading registrar and transfer agency for mutual funds. ‘Insta Loans against Mutual Funds’ is an extension of the Insta LAS, an instant loan facility that can be availed against equity shares, which the Bank launched over a year ago.
Rajesh Iyer, Head- Wealth, Private Banking and LAS, ICICI Bank said, “ICICI Bank has been offering a lot of retail products instantaneously to its customers leveraging upon data analytics and technology. In the past few years, the list of the instant products which the Bank had introduced include instant credit card, instant personal loan, instant home loan, instant car loan, instant credit called Paylater, instant overdraft facility for MSMEs and instant opening of Public Provident Fund account facility, and InstaLAS. This new facility, ‘Insta Loans against Mutual Funds’ is an extension of this endeavor.
We are happy to partner with CAMS for this facility to provide complete digital access for loans against mutual funds to our customers. With this facility, customers can leverage their mutual fund holdings to get access to funds instantly. We believe that in these extraordinary times of the Coronavirus pandemic, this offering will help both self-employed customers looking for funds for their business as well as salaried customers to tide over personal need for liquidity. Moreover, they will be able to avail this facility anytime, anywhere, using the Bank’s internet banking platform.”