Tata Capital Ltd has launched loans against mutual funds and customers can avail quick and hassle-free loans ranging from Rs 5 lakh to Rs 2 crore.
The digital loan offering is provided against a wide range of equity and debt schemes across mutual funds. Customers can avail the loan amount by marking a lien on the mutual fund units which are managed by various asset management companies.
Abonty Banerjee, Chief Digital Officer at Tata Capital, said mutual funds as an investment category has shown tremendous growth over the last decade and continues to gain momentum.
"Our latest digital product gives customers an opportunity to easily meet their fund needs in a seamless manner, even while retaining control over their portfolio. This is in line with our strategy of constantly offering innovative products which offer customer convenience," he said in a statement.
Assets under management of mutual fund industry grew from Rs 15 lakh crore in 2016 to Rs 35 lakh crore till July this year. Tata Capital offers consumer finance, advisory services, commercial finance, infrastructure finance, securities, investment banking, private equity advisory, credit cards and travel & forex services.