Online investment platform Kuvera on Monday said it has launched an offering that allows mutual fund investors to get instant loans against the units owned by them.
The platform has currently tied up with Bajaj Finance to offer loans to its registered mutual fund investors.
Loan against mutual fund units is in the form of an overdraft facility and interest is charged only on the amount availed as credit, according to a release by the company said.
The product, 'Loan Against Securities', offers MF investors a loan up to 80 per cent of the current market value of mutual funds.
One can borrow up to Rs 2 lakh at an interest rate of 11.5 per cent and above Rs 2 lakh at 10.5 per cent.
"Loan Against Securities is yet another offering that lets mutual fund investors ringfence their investments during an emergency. Recent uncertainties fuelled by COVID-19 have highlighted the importance of cheaper pools of liquidity while staying consistent on investments," its Chief Executive Officer Gaurav Rastogi said in the release.
The funds are transferred into the user's bank account in less than two days, while their fund units remain secure with the respective fund houses.
The entire process is done digitally in less than three minutes and any additional fees are disclosed upfront, it said.
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