Kochi, Sep 9 (BVI) Customers of South Indian Bank, a Kerala-based private sector Bank with nationwide presence, can now get loan against mutual fund investments.
To facilitate this, the bank has launched a digital loan facility called ‘Loan Against Mutual Funds’.
The loan application process is fully digital and paperless, ensuring swift disbursal with minimal procedures, the Bank said.
Customers can easily apply for the loan by registering and completing KYC verification using their PAN and Aadhaar.
Once verified, they can access funds based on their Mutual Fund investments to avail an overdraft.
For Equity Mutual Funds, up to 50% of the fund’s value can be availed as a loan, while for Debt Mutual Funds, up to 70% is permissible.
This process enables all investors to access funds when needed, without disrupting their investments, which continue to earn returns, the Bank said.
This facility is available to individuals aged from 18 to 75 years, irrespective of whether they are existing bank customers or not.
This innovative service has been introduced in partnership with M/s Ark Neo Financial Services, which operates the digital platform DhanLAP, it said.
“This initiative empowers the Mutual Fund investors to meet their immediate financial needs without compromising on their investment goals,” said Sanchay Kumar Sinha, Chief General Manager & Head – Retail Assets of South Indian Bank.
“By leveraging digital technology, we aim to provide quick, secure, and flexible financial solutions that align with the customers’ evolving needs,” he said. (BVI)
