Bhubaneswar : PhonePe, today announced the launch of its Loans Against Mutual Funds (LAMF) product, a fully native and digital experience for its users in a strategic partnership with DSP Finance, a tech-focused NBFC backed by the legacy DSP Group, combining heritage and capital markets expertise with modern innovation. PhonePe will enable customers to avail instant loans against their mutual fund portfolios directly within the PhonePe app. This new offering provides users with a secured credit limit up to INR 2 crores in less than 10 mins at a competitive interest rate.
This product transforms how mutual fund investors access liquidity by availing the loan without the need to sell their portfolio. By pledging funds as collateral, users can get instant funds while their portfolio stays invested and SIPs continue uninterrupted. Furthermore, unlike traditional loans, there are no monthly principal repayments or EMIs. Customers only need to pay interest on the amount they withdraw. They can use this as a credit line, repaying the principal anytime and withdraw again whenever needed.
The entire loan lifecycle, from onboarding to disbursement, repayment and even foreclosure, is managed seamlessly within the PhonePe app, offering a clean user experience. This integration gives users complete control over their loan, ensuring their mutual fund investments continue to earn market returns while providing them with the liquidity they need.
Speaking on the launch, Hemant Gala, CEO, PhonePe Lending, said, “At PhonePe, our vision is to empower every Indian to accelerate their financial progress by unlocking seamless access to financial products. The launch of Loans Against Mutual Funds in partnership with DSP Finance is a key step in that direction. We are revolutionizing secured lending by enabling our users to unlock the latent value of their investments. By turning mutual funds into a source of liquidity, we are building a more inclusive financial ecosystem where our users can meet their aspirations without compromising on their long-term wealth creation journey.”
Speaking on the launch, Jayesh Mehta, CEO, DSP Finance, said, “Our partnership with PhonePe brings together DSP Finance’s expertise in secured lending and PhonePe’s unmatched digital reach to create a powerful solution for Indian investors. With Loans Against Mutual Funds, customers can now access instant liquidity while continuing to benefit from the growth of their portfolios. This product is designed to give them control, convenience and confidence in managing both short-term needs and long-term aspirations.”
