New Delhi: HDFC Bank, India’s biggest private lender according to market value, has launched a new product on Wednesday which will allow its customers having mutual fund units to avail loan in few minutes. Customers can pledge their mutual fund assets online and get overdraft limit which it can use in future. HDFC Bank has partnered with CAMS (Computer Age Management Services) — a registrar and transfer agent- to provide this facility. This facility is an extension to HDFC Bank’s loan against securities which was launched in March.

Here’s all you need to know about HDFC Bank’s loan against mutual fund units:

1) HDFC Bank customers can avail this loan through HDFC Bank website. Customers holding schemes in at least one of the 10 fund houses registered with CAMS can apply for this loan.

2) HDFC Bank customers have to log in to myCAMS through HDFC Bank website and select which mutual fund units they would like to pledge from their holding.

3) One has to accept the terms and conditions of the loan following which a one-time password (OTP) will be sent to his registered phone number. On entering the OTP, an overdraft account will be created and will be ready to use.

4) Maximum amount of loan allowed under this scheme is 50 of the value of units and rate of interest on these loans would be up to 11 per cent.

5) This loan facility is available on both debt and equity mutual fund units. This type of loan is suitable for first-time borrowers having no credit history.