SBI has launched online loan facility against MF units through Internet Banking and YONO App

State Bank of India has launched an online loan facility against mutual fund (MF) units through its Internet Banking (INB) and YONO apps.

This digital offering enables customers to avail loans from the comfort of their home, offering a 100 per cent paperless and digital process that is available 24×7, the bank said in a statement.

The new loan facility is available for MF schemes of all asset management companies (AMCs) registered with CAMS.

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Earlier, the loan against MF facility was limited only to loans against SBI mutual fund schemes and was available only through branches which required physical visit by the customers.

“With the new facility, customers can avoid redemption of MF units in case of urgent need of funds,” SBI Chairman Dinesh Kumar Khara said.

With this launch, SBI has become the first public sector bank (PSB) to offer end-to-end digital loans on mutual fund schemes, according to a statement from the bank.