Mirae Asset Financial Services entered the lending business with Loan Against Mutual Funds (LAMF) as its first product. The company says it has introduced an online mobile application through which users can avail LAMF in minutes.
The Mirae Asset Financial Services mobile app can be installed directly from the Android or IOS app store.
Customers can avail an instant LAMF limit of Rs 50,000 to Rs 3 cr through encumbrance by flagging their mutual fund investments.
Customers can borrow from a large list of approved equity and debt mutual funds across multiple Asset Management Companies (AMCs) serviced by both RTAs – CAMS & KFintech.
The loan will be provided in the form of an overdraft, says Mirae Asset Financial Services.
Customers can withdraw the required amount through a mobile application whenever and wherever they need. When withdrawing, the amount is credited directly to the customer’s bank account on the same day.
Users can apply for the LAMF limit, withdraw and disburse the required amount, freeze the loan account and perform many other activities online through the mobile application.
Speaking on the launch of Mirae Asset Financial Services (India), Krishna Kanhaiya, Chief Executive Officer (CEO), said, “With MAFS, we are entering a very exciting and highly competitive space. We want to make a mark in the credit business by following our core customer value first. With this in mind, we have launched LAMF through a mobile application where clients can raise liquidity within 15 minutes. Most investors redeem their long-term investments to meet short-term needs such as business liquidity management, house repairs or medical emergencies, which is fundamentally wrong. We want to help customers by providing access to funds when they need them.”
Swarup Mohanty, Director, Mirae Asset Global Investments (India) said, “We are excited and looking forward to the adventurous journey in the credit business. The team put a lot of hard work into this launch. With the digital LAMF as the first product, the aim is to ensure that customers have access to funds when they need them in a convenient way. It also helps clients better manage their finances, as it’s a good option to take care of their short-term needs and continue to invest for their long-term goals.”