PhonePe Launches Loan Against Mutual Funds Facility! Get Up To Rs 2 Cr Loan In 10 Min; Here's How

In a major step to expand its fintech and lending service, PhonePe has recently launched its loan against mutual funds facility. PhonePe users can avail the LAMF facility in less than ten minutes.

The amount of loan and tenure of repayment depends on factors like mutual funds investment duration, returns, etc. The facility will allow PhonePe users to get loan instantly without worrying about its repayment. The instant LAMF feature will also help people in avoiding exiting their Mutual Fund investments during emergencies. Here are all the details about PhonePe's LAMF feature.

PhonePe's new facility has been launched in partnership with DSP Finance, a tech-focused NBFC. The company is backed by DSP group.

What Are The Benefits Of LAMF?

Using this feature, customers can pledge their funds as collateral and receive instant cash while keeping their portfolios intact. Unlike traditional loans, there are no monthly principal repayments or EMIs; users only pay interest on withdrawn amounts.
The entire loan process, from initiation to disbursement and repayment, is managed within the PhonePe app.

Taking loan against investment insures that people have control over their loans while their investments continue earning market returns.

How to Avail Loans on PhonePe?

Follow the below mentioned steps to avail loans on PhonePe:

-Download and install the PhonePe application on your mobile.
-Navigate the 'Loan' section on the app's home screen and select the 'Loan Against Mutual Fund'.
-You would be required to enter your PAN details and then OTP received on your mobile number registered with PAN.
-After entering PAN and OTP details, PhonePe fetches eligible mutual funds and computes a loan offer.
-Users then complete KYC, set up AutoPay for interest payments, pledge funds, and digitally sign the loan agreement to receive instant cash.

Hemant Gala, CEO of PhonePe Lending, stated that this launch aims to empower Indians by providing seamless access to financial products. "We are revolutionizing secured lending by enabling our users to unlock the latent value of their investments," he said.
Jayesh Mehta, CEO of DSP Finance, highlighted the collaboration's benefits and said, "Our partnership with PhonePe brings together DSP Finance's expertise in secured lending and PhonePe's unmatched digital reach." He emphasised that this product offers customers control and convenience while managing both short-term needs and long-term aspirations.

Launched in 2016 as a fintech company, PhonePe now deals with a range of products and facilities. The fintech platform not just provides a platform for online payment, but it also offers facilities related to loan, insurance, etc.

The company's portfolio includes financial products like insurance and lending, alongside consumer tech businesses such as Pincode and Indus AppStore. This new loan facility marks a significant step towards creating an inclusive financial ecosystem.