PhonePe and DSP Finance Launch Loans Against Mutual Funds
Why in the news
Fintech platform PhonePe has tied up with DSP Finance, an NBFC backed by the DSP Group, to offer loans against mutual funds. Investors get cash without selling their units.
Key facts
- Product: Loan Against Mutual Funds (LAMF); units are pledged as security.
- Ceiling: up to ₹2 crore.
- Repayment: no EMIs or compulsory monthly principal; only interest on the drawn sum.
- Users: retail investors and HNIs wanting flexible liquidity.
| Aspect | Detail |
|---|---|
| Partner NBFC | DSP Finance (DSP Group backed) |
| Security | Pledged mutual fund units |
| Maximum amount | ₹2 crore |
| Cost | Interest on withdrawn amount only |
About PhonePe
- Headquarters: Bengaluru, Karnataka.
- Founded in 2015.
- CEO: Sameer Nigam.
Exam angle
- LAMF lets investors raise funds without redemption.
- Know the partners: PhonePe and DSP Finance.
- HQ Bengaluru; founded 2015; CEO Sameer Nigam.