Fintech start-up Ark Neo announced the launch of DhanLAP, an end-to-end digital platform for instantly availing loans against financial products including mutual funds, shares, insurance, for retail investors.
The first product offered under DhanLAP is Loan Against Mutual Funds (LAMF). It is a robust LPaaS (Loan Platform as a Service) that has integrated asset management firms, registrar and transfer agents (RTAs), advisors, investors and non-bank financial companies, to simplify and digitize the entire mutual fund loan process for retail investors. Mutual fund investors can now digitally avail finance on their mutual fund investments in less than 15 minutes, and raise funds without redeeming or selling their mutual fund investments.
With its end-to-end digital processing, DhanLAP facilitates liquidity for investors to meet their short-term and mid-term financial requirements without liquidating their financial assets. Now customers can instantly avail funds as an overdraft or as a term loan, while keeping their portfolios intact. Customers pay interest only on the amount of finance availed.
Founder and CEO, C R Chandrasekhar, said in a statement: “With DhanLAP, we have completely digitized the entire journey of availing finance by using mutual fund units as a collateral and made the money available to the investor instantly. This takes care of their temporary financial needs, and the investor’s wealth grows unhindered. ‘Do not redeem, lien mark’ is our slogan for mutual fund investors”.
Karra Visweswar Rao, managing director of IFIN Securities Finance Limited (ISFL), one of the short listed NBFCs in the platform, said in a statement: “We are very happy to partner with DhanLAP to bring the central government’s vision of Digitizing India, to action, for Mutual Fund investors. We are sure that investors will continue to build their assets without hindrance, by leveraging it instead of selling the assets.”