SBI YONO to issue online loan facility against MF units

State Bank of India’s internet banking app, YONO, has introduced an online loan facility against mutual fund units. This will enable customers to avail loans from the comfort of their homes, indicating that it would be 100 per cent paperless and a digital process that would be available 24×7.

The new loan facility will be available to mutual fund schemes of all asset management companies (AMCs) registered with CAMS. This development, the lender said, is a marked upgrade from the previous service that was limited only to loans against SBI Mutual Fund schemes, and available only through branches, which meant customers had to physically visit the offices.

“We are pleased to introduce Loan against MF Units facility for our customers on internet banking and YONO app. We believe that the digitalization of Loan against MFs will enable our valued customers to experience a digital, hassle-free, and paperless loan process. It will also help them in avoiding redemption of MF Units in case of immediate need of funds,” said Dinesh Khara, SBI Chairman.

SBI, in its statement, added that it has become the first public sector bank (PSB) to offer end-to-end digital loan on mutual fund schemes in India.