State Bank of India To Offer Online Loan Against Mutual Funds

New Delhi: India's largest public sector lender State Bank of India has announced that the bank will offer online loan against mutual funds through Online Banking and YONO App.

"SBI, the country’s largest lender, is set to digitally empower customers and enhance convenience with the introduction of an online loan facility against mutual fund (MF) units through its Internet Banking (INB) and YONO App. This digital offering enables customers to avail loans from the comfort of their homes, offering a 100% paperless and digital process that is available 24x7," SBI said in a release.

The new loan facility is extended at attractive interest rates to mutual fund schemes of all Asset Management Companies (AMCs) registered with CAMS, said SBI. 

"The development marks a significant upgrade from the previous service, which was limited to loans against SBI Mutual Fund schemes only and was available only through branches requiring physical visits by customers," it added.

SBI said that with this launch, the bank has become the first public sector bank (PSB) to offer an end-to-end digital loan on mutual fund schemes in India.

"We are pleased to introduce Loan against MF Units facility for our customers on internet banking and YONO app. We believe that the digitalization of Loan against MFs will enable our valued customers to experience a digital, hassle-free, and paperless loan process. It will also help them in avoiding redemption of MF Units in case of immediate need of funds. We, at SBI, constantly strive to offer enhanced technology-led digital banking experience to the customers in order to minimize their branch visits,” Dinesh Khara, Chairman, SBI said.