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Paytm Money to introduce loans against stocks, mutual funds

Varun Sridhar, CEO - Paytm Money, said in an interview, "The platform has seen investors shift some of their mutual fund allocations to stock trading. It has also seen an increase in the average SIP amounts this year, particularly from more experienced investors".

November 25, 2020 / 10:23 AM IST
Representative Image

Representative Image

Paytm Money is mulling to introduce loans against stocks and mutual funds. In September 2017, the fintech major launched a direct mutual fund platform. In February, it reported investments worth Rs 5,000 crore through its platform. The company launched direct stock trading for its customers in September.

Varun Sridhar, CEO - Paytm Money, said in an interview "The platform has seen investors shift some of their mutual fund allocations to stock trading. It has also seen an increase in the average SIP amounts this year, particularly from more experienced investors", Mint reported.

He added, "As a leading direct mutual fund distributor and wealth platform, managing customers’ short-term liquidity needs or unforeseen expenses is our priority. We are thus considering and studying the launch of a simple loan against securities products involving both mutual funds and invested stocks. The key is a few click experiences, lower than unsecured loans pricing and a flexible product".

In June, Paytm Money's rival Kuvera unveiled a loan against mutual funds.

An interest rate of 10.5 percent is charged, besides a fee of Rs 1,999 for these types of loans. The loan amount is a percentage of the mutual fund investment and varies according to the type of mutual fund held, according to information available on Kuvera’s website.
Moneycontrol News
first published: Nov 25, 2020 10:23 am

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