FinEzzy on Monday said that it will disburse Rs 1,500 crore in loans against mutual funds over the next year. The announcement comes as FinEzzy launched its mobile app, introducing a comprehensive personal finance platform in order to leverage the growth witnessed in the growing fintech industry. According to Invest India, India has the highest fintech adoption rate globally of 87 per cent which is significantly higher than the global average rate of 64 per cent. Further, according to a report by EY, the promising Indian FinTech market is expected to reach $1 trillion in AUM and $200 billion in revenue by 2030.
The newly launched app will enable individual investors to obtain loan against their mutual fund portfolio, eliminating the need to liquidate their holdings and providing a much-needed alternative to meet their financial requirements. “The entire loan process is designed to be seamless, fast, reliable, and secure. By embracing a fully digital approach, users can complete the loan application process in under 15 minutes, eliminating the hassles of mammoth paperwork,” the company said.
FinEzzy uses one-time-password (OTP) based concerts to securely fetch holdings from Registrar and Transfer Agents (RTAs) and retrieve necessary documents from government repositories for Know Your Customer (KYC) compliance.
With a strong focus on meeting the demand of individual investors in metropolitan areas, we are well-positioned to achieve our target of disbursing Rs 1,500 crore in loans against mutual funds over 2023-24,” said Atul Garg, Co-Founder and CEO, FinEzzy. The objective is in line with the recent AMFI report which highlights that individuals hold approximately 50 percent of the Indian mutual fund industry’s assets under management (AUM) of 41.52 lakh crore, he added.
FinEzzy has also introduced a proposition for Independent Financial Advisors (IFAs) and Mutual Fund Distributors (MFDs) who can extend the loan against mutual funds feature to their clients, allowing them to retain their Assets Under Management (AUM) while offering an auto-redemption insurance that complements their existing practices.