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    HDFC launches digital loans against mutual funds

    HDFC launches digital loans against mutual funds

    HDFC launches digital loans against mutual funds
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    By CNBC-TV18  CNBCTV18.COM   IST (Updated)

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    HDFC Bank on Wednesday launched its Digital Loans against Mutual Funds (LAMF), in partnership with transfer agent CAMS.

    HDFC Bank on Wednesday launched its Digital Loans against Mutual Funds (LAMF), in partnership with transfer agent CAMS.
    Customers can now pledge mutual fund assets online and get overdraft limit set in their account in under three minutes.
    They can now avail of this product through the HDFC Bank website in three easy steps.
    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 or systematic investment plans (SIP).
    Digital loans against mutual funds is available for Indian customers and for portfolios that are individual holdings.
    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% of the total assets under management of the industry.
    After the success of HDFC Bank’s first offering ‘Digital Loans against Securities’ launched last year, the bank has now automated the entire process for ‘Digital Loans against Mutual Funds.’
    Today, a customer has to wait for 5-6 days to avail a loan against mutual funds.
    Even redemption of mutual funds takes couple of days for the funds to be transferred to the customers' 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; all in a matter of minutes.
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