State Bank of India, the biggest public sector lender in India, has said that it will provide online loans secured by mutual funds via YONO App and Online Banking.

"SBI, the biggest lender in the nation, plans to provide an online lending facility against mutual fund (MF) units through its Internet Banking (INB) and YONO App, empowering clients digitally and improving convenience. Customers may apply for loans online from the comfort of their homes with this digital service, which offers a completely paperless, digital procedure that is open around-the-clock, according to a statement from SBI.

According to SBI, the new lending option is available to mutual fund schemes of all Asset Management Companies (AMCs) registered with CAMS at competitive interest rates. 

"The development marks a significant upgrade from the previous service, which was limited to loans against SBI Mutual Fund schemes only and was available only through branches requiring physical visits by customers," it stated.

With this introduction, SBI claims to be the first public sector bank (PSB) in India to provide an end-to-end digital loan on mutual fund schemes.

"We are happy to offer our customers the ability to borrow against MF Units through the YONO app and online banking. We think that our esteemed clients will be able to enjoy a digitized, easy, and paperless lending process with the digitization of lending against MFs. In the event that they want money right away, it will also assist them in avoiding the redemption of MF Units. "We at SBI are constantly striving to provide customers with an enhanced technology-led digital banking experience in order to reduce their branch visits," stated Dinesh Khara, Chairman of SBI.