Fintech start-up Ark Neo launches DhanLAP, an end-to-end digital platform for instantly availing loans against financial products including mutual funds, shares, insurance, for retail investors.
Developed by a team with over 100 man years of experience in digital retail financial products, DhanLAP is a first-of-its-kind comprehensive digital platform in the country to avail finance against retail financial products. The first product offered under DhanLAP is Loan Against Mutual Funds (LAMF). It is a robust LPaaS (Loan Platform as a Service) that has seamlessly integrated Asset Management Companies, Registrar and Transfer Agents (RTAs), Advisors, Investors and Non-Banking Financial Companies, to simplify and digitize the entire mutual fund loan process for retail investors. With its comprehensive LAMF solution, 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.
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With its end-to-end digital processing, DhanLAP facilitates instant, hassle-free 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.
Speaking about the platform, Founder and CEO, C R Chandrasekhar stated, “Very few retail investors know that their mutual fund investments can be used as collateral to avail loans. When there is a financial need, the retail investors usually redeem their mutual fund units. This hinders their various financial goals and long-term wealth building. 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”.
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People are looking for greater convenience, and with the possibility of short term financial constraints arising at any time, there is an increased need for quick access to funds, when needed. DhanLAP strives to bridge this gap through its smarter, seamless, and completely digital LAMF solution. While the offline process has certainly been available for a while, it can take anywhere between a few days to weeks for the money to reach the bank account after a customer applies.
Elaborating on this, a senior executive from an AMC stated, “DhanLAP is an intelligent platform powered by technology that efficiently solves people’s need for temporary funds. Since, it brings together multiple stakeholders in the ecosystem into a single platform, it fundamentally gives a quick digital access to raise funds through the collateral route and solve their immediate needs.”
Mr. Karra Visweswar Rao, Managing Director of IFIN Securities Finance Limited (ISFL), one of the short listed NBFCs in the platform, stated, “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.”
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