State Bank of India (SBI) has launched an online loan facility against mutual fund (MF) units through its internet banking (INB) platform and YONO app.
In a statement, the bank announced that this digital offering allows customers to avail loans from the comfort of their homes, providing a 100% paperless and digital process available 24×7.
The new loan facility is available for MF schemes from all asset management companies (AMCs) registered with CAMS.
Previously, the loan against MF facility was limited to SBI Mutual Fund schemes only and required physical visits to branches.
Dinesh Kumar Khara, Chairman of SBI, stated, “With the new facility, customers can avoid redemption of MF units in case of immediate need of funds.”
With this launch, SBI has become the first public sector bank (PSB) to offer an end-to-end digital loan on mutual fund schemes.
