Tata Capital launched ‘Loan against Mutual Fund’, an industry first end -to -end digital offering enabling customers to avail quick loans starting from Rs 5 lakhs to 2 crores.
The digital loan offering is provided against a good range of equity and debt schemes across mutual funds. Customers can avail the loan amount by marking a lien on the open-end fund units which are managed by various asset management companies, Tata Capital said during a press statement.
The loan amount is customized supported the worth of the units within the open-end fund folio and tenure.
“Mutual funds as an investment category has shown tremendous growth over the last decade and continues to realize momentum. Our latest digital product gives customers a chance to simply meet their fund needs during a seamless manner, even while retaining control over their portfolio,” this is often in line with our strategy of continually offering innovative products which supply customer convenience.” Abonty Banerjee, Chief Digital Officer, Tata Capital said.
The Indian open-end fund Industry’s AUM has grown from Rs 15.18 trillion as on July 31, 2016 to Rs 35.32 trillion as on July 31, 2021 which is quite two fold increase during a span of 5 years, consistent with Association of Mutual Funds in India (AMFI).
The Tata Digital Loan against open-end fund are often applied as an overdraft facility or as a term loan with end to finish online execution. Auto renewal facility is additionally available for tenure exceeding one year subject to review of the open-end fund portfolio, the statement added.