scorecardresearchGeojit launches instant digital loan against mutual fund holdings; details

Geojit launches instant digital loan against mutual fund holdings; details here

Updated: 03 Apr 2023, 04:45 PM IST
TL;DR.

As per the NBFC, investors can avail of quick and hassle-free loans starting from 10,000 in 100 percent digital mode. Investors can avail of the loan anytime, and the loan amount will be credited to their registered bank account within a few hours.

Geojit Credits launched ‘Loan Against Mutual Fund'.

Geojit Credits launched ‘Loan Against Mutual Fund'.

Geojit Credits, a non-banking financial company (NBFC) and a subsidiary of Geojit Financial Services, announced the launch of ‘Loan Against Mutual Fund’ (LAMF) on April 3 for mutual fund (MF) investors to provide for their short-term requirements.

As per the NBFC, investors can avail of quick and hassle-free loans starting from 10,000 in 100 percent digital mode.

"MF investors are often forced to redeem their investments for instant liquidity to meet their short-term requirements. A loan against mutual funds allows investors to raise instant funds at attractive interest rates for their short-term liquidity requirements by keeping their mutual fund investments as collateral," said Geojit Credits.

"With 'Geojit Online Credits Facility', investors can avail of a loan against mutual funds with instant disbursal from the convenience of their home. Investors will retain the ownership of their mutual funds and earn returns on them, but they cannot redeem the units till the loan is closed," said the NBFC.

Investors can avail of the loan anytime, and the loan amount will be credited to their registered bank account within a few hours.

Moreover, they can repay their loan amount without incurring any prepayment or foreclosure charges. Geojit Credits’ loan against mutual funds interest rate starts at 8.99 percent per annum. The interest would be charged only on the amount utilised by investors and for the loan duration.

"The need for short-term liquidity of money is growing as demand is picking up and digital transactions are expanding rapidly. Our newest product, digital loan against mutual fund, will be of great help to investors who can avail loans at competitive rates and not redeem their MF investments, which is part of their long-term wealth creation and investment plan," said Bejoy Anthraper, Business Head of Geojit Credits.

 

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First Published: 03 Apr 2023, 04:45 PM IST