SBI Bank’s Digital Innovation: Paperless Loans on Mutual Funds Anytime, Anywhere

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SBI Loan Against Mutual Funds

Loan Now Available via Online Banking and YONO App

State Bank of India (SBI), the country’s largest lender, now offers loans against mutual fund (MF) units through its Internet Banking (INB) and YONO App. With this new facility, SBI becomes the first bank in India to provide such a service, allowing customers to secure loans from the comfort of their homes. The process is entirely paperless and digital, available to customers 24×7.

New Facility for Customers

This loan facility is available at attractive interest rates for mutual fund schemes of all asset management companies (AMCs) registered with CAMS. Previously, this service was limited to SBI mutual fund schemes and required customers to visit a branch.

SBI Chairman Dinesh Khara stated, “We are happy to launch the facility of loans against MF units for our customers on Internet Banking and YONO App. We believe that the digitization of loans against MF will enable our customers to experience a digital, hassle-free, and paperless loan process. This will also eliminate the need for them to sell MF units in case of urgent need of funds.” With this launch, SBI has become the first public sector bank (PSB) to offer end-to-end digital loans against mutual fund schemes in India.

Loan Amount Details

Customers can avail a minimum loan of Rs 25,000 against mutual funds, with a maximum loan amount of Rs 5 crore. Specifically, up to Rs 20 lakh can be availed under Equity / Hybrid / ETF MF and up to Rs 5 crore under Debt / FMP MF (Loan Against Mutual Funds). For more information, customers can click on the provided link. https://sbi.co.in/web/personal-banking/loans/loans-against-securities/loan-against-mutual-fund-units