Mumbai: HDFC Bank on Wednesday launched its Digital Loans against Mutual Funds (LAMF), in partnership with transfer agent CAMS. The Digital LAMF is available for resident Indians and for portfolios that are individual holdings.
“Customers can now pledge mutual fund assets online and get overdraft limit set in their account in under 3 minutes,” HDFC Bank said in a statement.
With this product, customers can leverage their mutual fund (MFs) portfolio to avail funds for any contingencies or emergencies without liquidating their investments or stopping their regular investment plans/SIPs.
It is open to all HDFC Bank customers holding assets in at least one of the ten mutual fund houses registered with the CAMS. These ten fund houses together constitute about 60 percent of the total assets under management of the industry.
Customers can avail Digital LAMF in 3 easy steps on Net Banking:
- Log in to myCAMS via HDFC Bank website and select which mutual funds they would like to pledge from their portfolio
- Click on loan terms and conditions
- Input one-time password (OTP) and overdraft will be ready to use in their account
With Digital LAMF, customers can design their own loan against mutual fund, choosing which assets from their portfolio they would like to pledge, calculate their overdraft limit eligibility against mutual fund, open a current account online instantly and get the money into the account, HDFC said.
These are the key benefits of Digital LAMF:
- Instant availability of money in account within minutes.
- Available against both Debt & Equity Mutual Funds
- Customer retains mutual fund portfolio without liquidation
- First-time borrowers without credit history can access loans
- Interest applied only on amount utilised
- Available across the country on HDFC Bank website
- New Loans and Enhancements can be done online
“With this product, we hope to reach out to customers in the tier 2 and 3 markets and bring them into the digital lending fold," said Arvind Kapil, Group Head – Unsecured Loans, Home, and Mortgage Loans, HDFC Bank.