Digital loans against mutual funds by HDFC
4 June 2018: HDFC launches digital loans against mutual funds in collaboration with CAMS. Customers can now undertake their mutual fund assets online and get overdraft limit set in their account in under three minutes. Usually, a customer has to wait for five to six days to employ a loan against mutual fund holdings.
Digital Loans against Mutual Funds is available for lodgers and for portfolios that have individual holdings. According to a release by the company, this product can be assisted through the HDFC Bank website in three easy steps:
1.Log into myCAMS via HDFC Bank website and select the mutual funds to pledge from the portfolio
2. Click on loan terms and conditions
3. Input one-time password (OTP) and overdraft will be ready to use in the account
The new facility is open to all HDFC Bank customers holding assets in at least one of the ten mutual fund houses registered with CAMS. These ten fund joint together embody about percent of the total forte under the management of the mutual fund industry
With digital LAMF, the customer can draw plans of their loan against mutual funding choosing which assets they would like to pledge, calculate their overdraft limit eligibility against mutual funds, open a current account quickly and get the money into the account.
“Digital Loans against Mutual Fund is an industry first innovation and takes customer convenience, flexibility and access to greater heights. We are happy to join with CAMS on this initiative to provide entire digital access for loans against mutual funds to our customers,” said Arvind Kapil, Group Head