INDmoney introduces instant loan facility against mutual funds
INDmoney, a fast-growing investment and money management app, has announced the launch of ‘Insta Plus’, a secured loan solution that allows users to access a line of credit against their mutual fund investments.
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The offering enables users to get access to instant cash without needing to liquidate their investments. This also allows users to save on exit loads and taxes while continuing to retain the benefits of compounding.
Insta Plus allows users to withdraw any time with a low interest rate and a value ranging from ₹25,000 to a maximum of ₹2 Crore.
The loan limits extend up to 45% of the equity fund value and 75% of the debt fund value. This structure not only provides substantial credit access but also helps new-to-credit individuals build their credit profiles, further promoting financial inclusion in the country.
Speaking on the launch Ashish Kashyap, Founder of INDmoney, said, “The launch of Insta Plus is in line with our aim of helping consumers improve their financial lives. Historically, loans against mutual funds have seen limited adoption due to broken systems and lack of easy access. Investors on INDmoney manage over ₹90,000 Crore worth of mutual fund assets. We are well-positioned to drive the adoption of this offering by giving a transparent, intuitive and seamless experience to our app users.”
The loan structure includes a 12-month tenure with options for renewal and features a bullet repayment method. Additionally, Insta Plus has no foreclosure charges, giving users the option to repay their loans early without any penalties. The end-to-end digital process allows for quick disbursement of the loan, ensuring a hassle-free solution for users' immediate financial needs.