SBI, SBI YONO App: Introduces online loan facility against MF units

State Bank of India has introduced an online loan facility against mutual fund (MF) units through its internet banking (INB) and YONO App.

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

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

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Previously, the loan against MF facility was limited to loans against SBI Mutual Fund schemes only and was available only through branches requiring physical visits by customers.

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

With this launch, SBI has become the first public sector bank (PSB) to offer an end-to-end digital loan on mutual fund schemes, per the bank statement.