You can now avail digital loans against mutual funds, as HDFC Bank has launched a facility in partnership with CAMS where you borrow against your investments. The facility will be useful to meet contingencies, as, currently, one has to wait for 5-6 days to take out a loan against mutual funds. Even redemption takes a couple of days for the amount to get transferred to a bank. The facility will also give the chance to first-time borrowers without a credit history to access loans. Also Read - HDFC Bank Apologises After Customers Report Online, Mobile Banking Troubles

Arvind Kapil, Group Head – Unsecured Loans, Home, and Mortgage Loans, HDFC Bank, said, “Digital Loans against Mutual Fund is an industry first innovation and takes customer convenience, flexibility and access to greater heights. In emergencies, customers will not be forced to liquidate assets at less than optimal market conditions. They can instead design their own loan to tide over the cash crunch.” Also Read - HDFC Bank Named India's Best SME Bank By Asiamoney

The facility is for all HDFC Bank customers having one of the ten mutual fund houses registered with CAMS. These ten fund houses together constitute about 60 percent of the total assets under management of the industry. Also Read - Have You Faced ATM Transaction Failure Due to Insufficient Balance? Here’s What You Need to do

Kapil added, “We are happy to partner with CAMS on this initiative to provide complete digital access for loans against mutual funds to our customers. With this product, we hope to reach out to customers in tier 2 and 3 markets and bring them into the digital lending fold.”

To avail the loan you need to login to myCAMS via HDFC Bank website and select mutual funds you like to pledge from your portfolio. After clicking on terms and conditions and sharing a one-time password, money will be sent to your account

HDFC Bank launched ‘Digital Loans against Securities’ last year. By using the facility you could pledge shares online and get overdraft limit set within few minutes.