PhonePe has launched its Loans Against Mutual Funds (LAMF) product, offering a fully digital and seamless experience through a strategic partnership with DSP Finance, a tech-driven NBFC backed by the legacy DSP Group. This new feature allows users to avail instant secured credit up to ₹2 crores in under 10 minutes, directly within the PhonePe app, without selling their mutual fund investments.
By pledging mutual fund units as collateral, users gain access to liquidity while their SIPs continue uninterrupted, allowing long-term investments to grow. The loan product offers a flexible credit line with no EMIs or monthly principal repayments—customers pay interest only on the amount withdrawn and can repay or re-borrow as needed.
The entire loan lifecycle—onboarding, disbursal, repayment, and foreclosure—is managed digitally within the app, providing users with full control and transparency. This initiative transforms traditional secured lending into a modern, customer-first product.
Hemant Gala, CEO of PhonePe Lending, stated, “We’re unlocking the latent value of mutual funds to provide seamless access to liquidity, enabling users to pursue short-term goals without sacrificing long-term wealth creation.”
Jayesh Mehta, CEO of DSP Finance, added, “This partnership combines DSP’s lending expertise with PhonePe’s digital scale to deliver convenience, control, and confidence to Indian investors.”
Users can find the ‘Loan Against Mutual Funds’ option in the ‘Loans’ section of the PhonePe app’s home screen and complete the process in just minutes.