South Indian Bank Launches Digital Loan Against Mutual Funds

AHMEDABAD, September 09: South Indian Bank has launched a new digital loan facility, ‘Loan Against Mutual Funds,’ enabling the customers to avail loans against their mutual fund investments. The loan application process is fully digital and paperless, ensuring swift disbursal with minimal procedures. This innovative service has been introduced in partnership with M/s Ark Neo Financial Services, which operates the digital platform DhanLAP.

Customers can easily apply for the loan by registering and completing KYC verification using their PAN and Aadhaar. Once verified, they can access funds based on their Mutual Fund investments to avail an overdraft. This facility is available to individuals aged from 18 to 75 years, irrespective of whether they are existing bank customers or not.

For Equity Mutual Funds, up to 50% of the fund’s value can be availed as a loan, while for Debt Mutual Funds, up to 70% is permissible. This process enables all investors to access funds when needed, without disrupting their investments, which continue to earn returns.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)