Non-banking financial company Mirae Asset Financial Services, a subsidiary of Mirae Asset Group, has entered the lending business with loan against mutual funds (LAMF) as the first product.
The company has introduced an online mobile application through which consumers can avail of LAMF facility within minutes.
Mirae Asset Financial Services claims that this is one of the first end-to-end digital and paperless LAMF offering.
The loan will be made available in the form of an overdraft facility. Customers can withdraw the required amount via mobile app, whenever and from wherever they need it. On withdrawal, the amount is directly credited to the customer’s bank account the same day.
Users can apply for the LAMF limit, withdraw and repay the required amount, foreclose the loan account and complete many other activities online via the mobile application.
Speaking on the launch of Mirae Asset Financial Services (MAFS), Krishna Kanhaiya, chief executive officer, said, “We want to make a mark in the lending business by following our core value of customer first. Keeping this in mind we have launched LAMF via a mobile app where customers can raise liquidity within 15 minutes. Most investors redeem their investments done for long-term goals to meet short-term needs like managing liquidity in business, house renovation or medical emergencies which is fundamentally incorrect.”
Customers can avail of instant LAMF limit from ₹50,000 to ₹3 crore by lien marking their mutual fund investments. Customers can lien mark from a list of approved equity and debt mutual funds across multiple asset management companies (AMCs) serviced by both Registrar and Transfer agents (RTAs) — CAMS and KFintech.
Swarup Mohanty, director, Mirae Asset Global Investments (India), said, “With digital LAMF as the first product, the aim is to ensure that the customers have access to funds when they need them in a convenient manner. This also helps customers to manage their finances better as it is a good option to cater to their short-term needs and continue to stay invested for their long-term goals.”
