Kochi : South Indian Bank has introduced an innovative digital loan service known as ‘Loan Against Mutual Funds,’ enabling customers to obtain loans based on their mutual fund investments. The entire application process is fully digital and paperless, ensuring quick disbursal through streamlined procedures. This advanced service has been launched in partnership with M/s Ark Neo Financial Services, which oversees the digital platform DhanLAP.
“This initiative empowers Mutual Fund investors to meet their immediate financial needs while adhering to their investment goals,” remarked Mr. Sanchay Kumar Sinha, Chief General Manager and Head of Retail Assets at South Indian Bank. “By leveraging digital technology, we aim to provide fast, secure, and flexible financial solutions that align with our customers’ evolving requirements.”
Customers can easily apply for a loan by registering and completing the KYC verification process using their PAN and Aadhaar. After successful verification, they can access funds based on their Mutual Fund investments to secure an overdraft. This service is available to individuals aged 18 to 75 years, irrespective of whether they are existing bank customers. For Equity Mutual Funds, investors can borrow up to 50% of the fund’s value, while the borrowing limit for Debt Mutual Funds is set at 70%. This approach allows investors to access funds when needed without disrupting their investments, which continue to yield.
