Tata Capital announced the launch of loan against mutual funds (LAMF) for customers to avail quick, hassle-free loans ranging between Rs 5 lakh – Rs 2 crore. This is a first-of-its-kind offering in the mutual fund industry. The financial services company of the Tata Group’s digital loan offering is provided against a variety of debt and equity schemes across mutual funds (MFs).
For this, customers can avail the loan amount by marking a lien on the mutual fund units which are managed by several asset management companies, according to a recent statement shared by Tata Capital. The loan against mutual funds is backed by analytics and is a personalised product suited for diverse fund requirements of customers.
The mutual fund industry’s assets under management (AUM) has grown from Rs 1,518,000 crore in July, 2016 to Rs 3,532,000 crore in July, 2021, marking over a two-fold increase in a span of five years, according to AMFI (association of mutual funds in India).