ICICI Bank launches instant loan against mutual fund units

ICICI Bank announced the launch of a facility that enables retail customers to get loan of up to Rs 1 crore instantaneously by pledging their holdings in both debt and equity schemes of mutual funds. According to a press release, the fully digital and paperless facility lets the customers avail this loan as an overdraft (OD) in a matter of few minutes. Physical documents and visiting the bank branch is not needed.

The facility is called, ‘Insta Loans against Mutual Funds’, and is launched in partnership with ‘Computer Age Management Services’ (CAMS), the country’s leading registrar and transfer agency for mutual funds. ‘Insta Loans against Mutual Funds’ is an extension of the Insta LAS, an instant loan facility against equity shares, which the Bank launched over a year ago.

With ‘Insta Loans against Mutual Funds’, the millions of pre-approved customers of the Bank get the convenience to select the mutual fund scheme and number of units they wish to pledge, confirm the loan amount and set-up the OD limit in a few simple clicks on the Bank’s internet banking platform. The facility is open to customers of the Bank holding units in mutual fund schemes serviced by CAMS. This offering comes handy to customers in the current pandemic scenario as it empowers them to take care of their liquidity by pledging assets, without stepping out of the comfort of their homes.

“ICICI Bank has been offering a lot of retail products instantaneously to its customers leveraging upon data analytics and technology. In the past few years, the list of the instant products which the Bank had introduced include instant credit card, instant personal loan, instant home loan, instant car loan, instant credit called Paylater, instant overdraft facility for MSMEs and instant opening of Public Provident Fund account facility, and InstaLAS. This new facility, ‘Insta Loans against Mutual Funds’, is an extension of this endeavor,” said Rajesh Iyer, Head- Wealth, Private Banking and LAS, ICICI Bank.

“Leveraging technology to augment mutual fund customer experience has been a focus area of CAMS. We are delighted that our portal is expanding further to serve mutual fund customers in newer ways. The collaboration with ICICI Bank to design a 100% digital solution for loans against mutual funds will help set higher service standards and superior customer experience. This is an important milestone in our mutual fund service journey,” Anuj Kumar, President & CEO, CAMS.

This facility can be availed by marking a lien on the existing mutual funds serviced by CAMS, in a few clicks. It is available for resident Indians and for portfolios that are individual holdings.

The loan can be availed against a wide range of debt and equity schemes of mutual funds serviced by CAMS and approved by the Bank. Minimum loan amount is Rs. 50,000 for both debt and equity schemes of MFs. Maximum loan amount is Rs. 1 crore for debt schemes of MFs and Rs. 20 lakh for equity schemes of MFs.


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