Tata Capital has launched the ‘Loan against Mutual Fund’, the first digital donation industry that enables customers to get instant loans ranging from Rs 5 lakhs to 2 crores.
Digital loan disbursements are offered against multiple credit equity schemes in joint funds. Customers can obtain a loan amount by placing a sleeping bag on shared fund units owned by various asset management companies, Tata Capital said in a press release.
The loan amount is customized based on the number of units in the share fund form and positions.
“Shared investments as an investment phase have shown significant growth over the past decade and continue to gain momentum. Our latest digital product gives customers the opportunity to easily meet their wallet needs seamlessly, though maintaining their portfolio, “This is in line with our strategy to always provide new products that cater to customers easily.” Abonty Banerjee, Chief Digital Officer, Tata Capital said.
The AUM of Indian Mutual Fund Industry has grown from Rs 15.18 trillion from July 31, 2016 to Rs 35.32 trillion as of July 31, 2021 which is a doubling of five years, according to the Association of Mutual Funds in India (AMFI) .
Tata Digital Loan against Mutual Fund can be used as an overdraft facility or as a term loan for the final completion of the internet. The automatic renewal center is available for a period not exceeding one year depending on the review of the joint fund portfolio, the statement added.