HDFC's digital loan facility a quick way to meet short-term cash crunch

HDFC Bank's overdraft against mutual funds promises quick disbursal, but customers should also weigh the option of selling off their fund holdings

HDFC Bank in partnership with CAMS, a registrar and transfer agent (RTA), has launched a digital loan facility wherein bank customers can borrow against the mutual funds in their portfolios. Currently, this facility is available only to those who hold mutual fund schemes from one of the 10 fund houses for which CAMS is the RTA. While the facility for loan against mutual funds is already available, the HDFC-CAMS overdraft (OD) facility is entirely online. 

This facility can be availed through HDFC bank's net banking portal. The whole process can be completed online and requires no documentation. The interest rate