Kochi: South Indian Bank has unveiled an innovative digital loan facility called ‘Loan Against Mutual Funds,’ allowing customers to secure loans based on their mutual fund investments. The entire loan application process is completely digital and paperless, facilitating quick disbursal with streamlined procedures. This cutting-edge service has been launched in collaboration with M/s Ark Neo Financial Services, which manages the digital platform DhanLAP.
“This initiative enables Mutual Fund investors to address their immediate financial requirements while staying true to their investment objectives,” stated Mr. Sanchay Kumar Sinha, Chief General Manager and Head of Retail Assets at South Indian Bank. “By harnessing digital technology, we strive to deliver swift, secure, and adaptable financial solutions that cater to our customers’ changing needs.”
Customers can effortlessly apply for a loan by registering and completing the KYC verification process with their PAN and Aadhaar. Upon successful verification, they can access funds based on their Mutual Fund investments to obtain an overdraft. This service is available to individuals aged between 18 and 75 years, regardless of their status as existing bank customers.
For Equity Mutual Funds, investors can borrow up to 50% of the fund’s value, while for Debt Mutual Funds, the borrowing limit is set at 70%. This approach allows investors to access funds when necessary without interrupting their investments, which continue to generate returns.