 "Instead of liquidating their mutual funds, the LAMF model allows investors to leverage their portfolio to access credit and meet short-term funding needs.")
With refined technology stacks, fintechs are venturing into secured lending such as loans against mutual funds (LAMFs), after building a presence in gold and property-backed credit.
The latest product for fintechs is LAMF, enabled by the fully digital nature of securities in India. Companies are using in-house technology stacks to facilitate such transactions in real time, which only a few years ago would have taken weeks.
Users can pledge their mutual funds as collateral to get instant credit while continuing to stay invested through systematic investment plans (SIPs).
“The technology innovation that happened in the last one year has allowed
