YES BANK launches digital ‘Loan against Securities’ solution

By Edil Corneille

YES BANK announced the launch of its digital ‘Loan against Securities’ solution. The offering is said to enable customers lien mark their mutual funds digitally and avail quick and hassle-free loans. The digital solution has been launched under YES BANK’s ‘Loan in Seconds’ platform, allowing customers to set an instant credit limit against the securities held. Customers can now avail loans digitally without any additional documentation from the safety and comfort of their homes.

Customers can avail of the facility from the bank’s website and lien mark mutual funds with KFin Technologies as the registrar. They can check the terms and authenticate the request for enabling an instant limit setting.

Rajan Pental, Global Head – Retail Banking, YES BANK said, “This launch is a testament to YES BANK’s digital innovation and technology capabilities, aimed at offering convenient, fast and easy-to-use solutions and products to customers. This solution provides a differentiated banking experience to customers as the limit is set-up instantly in a completely paperless and hassle-free manner. We are pleased to be the first Bank to partner with KFin Technologies to provide a completely digital loan against mutual funds to our customers.”

Leveraging the bank’s technology and analytics, the solution through its algorithm, processes the loan application digitally in real-time.

Sreekanth Nadella, CEO, KFin Technologies said, “It gives us immense pleasure to partner with YES BANK and provide a unique experience to customers by providing instant loan against Mutual Funds. This is a truly digital offering without any paperwork. Customer convenience has always been the core of our organisation and this digital offering is another step in that direction. We look forward to a long and mutually beneficial relationship with YES BANK.”

The process of the loan application entails two validations from the bank as well as two validations from KFin Technologies, thereby ensuring safety in the process. Funds can be instantly available within minutes. A loan of up to INR 10 million can be availed against debt mutual funds. Loans are also available against equity mutual funds as well. The customer benefits as they retain the mutual fund portfolio without liquidation. The interest is applied only to the amount utilised for the number of days of utilisation.

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