Tata Capital Ltd., has introduced ‘Loan Against Mutual Funds’ (LAMF), a digital offering to provide loans from ₹5 lakh to ₹2 crore.
The loans will be provided against equity and debt schemes across mutual funds. Customers can avail the loan amount by marking a lien on the mutual fund units which are managed by various asset management companies to meet diverse fund requirements, Tata Capital said.
The loan amount is customised based on the value of the units in the mutual fund folio and tenure and the customer will continue to hold the mutual funds portfolio and can enjoy its benefits as well.
“The customer does not require to redeem the portfolio and pays interest only on the applied loan amount,” it said.
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