365telugu.com online news,Sptember 3rd,2025: PhonePe has announced the launch of its Loans Against Mutual Funds (LAMF) product, offering users a fully digital and seamless borrowing experience. The initiative is introduced in collaboration with DSP Finance, a tech-driven NBFC backed by the DSP Group.
Through this offering, PhonePe users can instantly avail secured credit limits of up to ₹2 crore against their mutual fund portfolios, directly within the PhonePe app. The process takes less than 10 minutes, with competitive interest rates.
The unique proposition of this product is that investors need not liquidate their mutual fund holdings. By pledging funds as collateral, customers can access liquidity while their investments and SIPs continue uninterrupted. Unlike traditional loans, there are no EMIs or mandatory monthly principal repayments—borrowers pay interest only on the amount withdrawn. The credit line can be repaid anytime, with the option to withdraw again as needed.
The entire loan lifecycle—from onboarding to disbursement, repayment, and even foreclosure—is managed within the PhonePe app, ensuring a smooth and transparent experience.
Commenting on the launch, Hemant Gala, CEO of PhonePe Lending, said:
“Our vision is to empower every Indian to accelerate financial progress by enabling easy access to innovative financial products. Loans Against Mutual Funds is a step toward transforming secured lending, allowing users to unlock liquidity without affecting long-term wealth creation.”
Adding to this, Jayesh Mehta, CEO of DSP Finance, stated:
“This partnership combines DSP Finance’s secured lending expertise with PhonePe’s strong digital reach. With this product, customers get instant liquidity while continuing to benefit from their portfolio growth, giving them greater flexibility and confidence in managing their financial needs.”
The entire process to avail a loan against mutual funds is designed to be completed in minutes, entirely within the PhonePe app. Here’s how users can avail this on the app:
Initiation: Users can find the ‘Loan Against Mutual Fund’ option in the ‘Loans’ section of the home screen on the PhonePe app.
Get Loan Offer: The user enters PAN & OTP. PhonePe securely fetches their list of eligible mutual funds and instantly computes their loan offer. The user selects the loan amount they want.
Complete KYC & setup autopay :Complete the KYC and set up monthly AutoPay for interest payments
Pledge Funds:The user pledges their funds to confirm the loan
Get Instant Cash : User then signs the loan agreement digitally. The loan amount is credited into their bank account instantly
