Mirae Asset’s NBFC in pact with investment platform FundsIndia to lend against securities to investors

Hyderabad, May 10, 2023: Mirae Asset Financial Services (India) has inked a pact with FundsIndia to provide loan against securities on the FundsIndia platform through an entirely digital process. 

This credit facility is available on FundsIndia investor platform and soon will be released on their partner platform as well. FundsIndia partners will also be able to offer the product to their investors digitally via the FundsIndia partner platform.   

As part of the deal, investors will be able to pledge their mutual fund units of different asset management companies (AMCs) with both CAMS and KFintech – the Registrar & Transfer Agents (RTA) to avail loan against mutual funds. Customers can also pledge shares from a large list of approved shares held in Demat account with NSDL only. 

The investors will get the option of creating an overdraft facility against their mutual funds and shares on the FundsIndia portal at 9% p.a. and with a fixed processing fee of Rs 999 plus taxes that will help them manage their liquidity without redeeming their investments.

“We have so far onboarded 400 plus mutual fund distributors as our channel partners and the business from them has grown significantly in the last quarter. Now with FundsIndia making available our product on their website and mobile app, we will be able to reach out to a large number of investors that they cater to, and I am confident that a large number of investors will take advantage and avail loan against mutual funds/ shares to take care of their short term money requirement. Currently, 30% of our clients are sourced by channel partners. I expect this number to go up significantly with partners like Fundsindia coming on board.” said Krishna Kanhaiya, Chief Executive Officer, Mirae Asset Financial Services.

Excited with the collaboration Girirajan Murugan, CEO, FundsIndia said, “We are delighted to announce that we at FundsIndia have partnered with Mirae Asset Financial Services to provide our investors with greater access to credit against their securities. This partnership marks a momentous milestone for both firms and is sure to benefit thousands of investors across India.

Our collaboration will ensure that our investors can access credit facilities in a reliable and convenient manner. We are committed to providing a seamless and hassle-free digital experience to our customers and look forward to working together to make this a reality.

We are confident that our partnership with Mirae Asset’s NBFC arm will be a great success and are excited to provide our investors with a wider range of credit options. We believe this will open up new opportunities for investors and help them achieve their financial goals.

We thank Mirae Asset Financial Services for their trust in us and we look forward to continuing our successful collaboration."