New Delhi: It has over a year that HDFC launched its digital loans against mutual funds. In the form of overdrafts, one can get loans online and it involves some easy steps as described on the website of the bank.

What do you need?

Your bank should be registered with the Mutual Fund registrar, so this facility can be offered.
You should have online banking facility.
Log in access to CAMS (Computer Age Management Services) or Mutual Fund registrar’s portal.

How to apply?

Open your bank website.
Key in your NetBanking credentials
Click on the Demat button.
Click on the Request option.
Select Loan Against Securities
Via NetBanking, log into your CAMS account
Select the Mutual Funds that you want to pledge
You will receive a One Time Password to activate the facility.

Benefits of digital loan

This is a hassle free and quick way to have funds available in your account when you need it for emergencies or any other need.
You can secure the loan against Mutual Funds from anywhere and everywhere.
You do not need to rush to the bank branch anymore and push your way through endless amount of paper work.
You need to pay interest only on the amount of loan utilized.
You can get up to 80% of the value of the pledged securities as the loan amount.
The scheme allows loan against Mutual Funds (equity and debt). 50% of net asset value in case of equity funds can be pledged and up to 80% of the net asset value in case of debt funds.