Tata Capital launched ‘Loan against Mutual Fund’, an industry-first end-to-end digital offering empowering clients to profit speedy loans ranging from Rs 5 lakhs to 2 crores.

The digital loan offering is given against a wide range of equity and debt schemes across mutual funds. Clients can benefit the loan amount by denoting a lien on the mutual fund units which are managed by different asset management organizations, Tata Capital said in a press statement.

The loan amount is customized dependent on the worth of the units in the mutual fund folio and residency.

“Mutual funds as an investment category has shown tremendous growth over the last decade and continues to gain momentum. Our latest digital product gives customers an opportunity to easily meet their fund needs in a seamless manner, even while retaining control over their portfolio,” This is in line with our strategy of constantly offering innovative products which offer customer convenience.” Abonty Banerjee, Chief Digital Officer, Tata Capital said.

The Indian Mutual Fund Industry’s AUM has developed from Rs 15.18 trillion as on July 31, 2016 to Rs 35.32 trillion as on July 31, 2021 which is in excess of two fold increase in a range of five years, as indicated by Association of Mutual Funds in India (AMFI).

The Tata Digital Loan against Mutual Fund can be applied as an overdraft facility or as a term loan with end to end online execution. Auto renewal facility is likewise accessible for residency surpassing one year subject to review of the mutual fund portfolio, the statement added.

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By Hugo Donaldson

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