INDmoney, a leading investment and money management platform, has introduced "Insta Plus," a secured loan product that allows users to access a line of credit against their mutual fund investments. This offering enables investors to borrow funds instantly without liquidating their assets, thereby avoiding exit loads and taxes while still benefiting from compounding. The service offers flexibility with low interest rates, withdrawal anytime, and credit limits up to ₹2 crore, making it an attractive solution for users. Additionally, Insta Plus promotes financial inclusion by helping new-to-credit individuals build their profiles.

Insta Plus: A Secured Loan Against Mutual Funds

INDmoney's latest offering, Insta Plus, allows users to access instant cash by borrowing against their mutual fund investments. Rather than liquidating their assets during times of financial need, users can leverage their mutual funds to secure a loan. This ensures they retain the benefits of compounding, avoiding exit loads and tax liabilities. The line of credit is available instantly, offering substantial liquidity without disrupting long-term financial goals.

Loan Limits and Credit Access

Insta Plus offers a flexible borrowing range from ₹25,000 to a maximum of ₹2 crore, catering to both small and large financial needs. The loan limit is structured around the user's mutual fund holdings, with up to 45% of equity fund value and 75% of debt fund value available as credit. This structure not only provides substantial access to credit but also offers a pathway for new-to-credit individuals to build their credit profiles, encouraging broader financial inclusion.

Streamlined Digital Process with No Foreclosure Charges

One of the key features of Insta Plus is its end-to-end digital process, ensuring quick and hassle-free disbursement of funds. The platform has eliminated traditional bottlenecks, allowing users to access their credit line with minimal friction. Moreover, there are no foreclosure charges, meaning users can repay their loans early without incurring penalties. This added flexibility makes Insta Plus a highly consumer-friendly option for addressing short-term financial needs.

Loan Tenure and Repayment Structure

Insta Plus features a 12-month tenure, with options for renewal, and employs a bullet repayment method, where the entire loan amount is paid at the end of the term. This repayment structure offers significant flexibility for users who may need time before they can settle their loan. By offering the option to renew the loan and with no early repayment penalties, Insta Plus enhances its appeal to a wide range of investors seeking financial flexibility.

A Growing Market for Loans Against Mutual Funds

Ashish Kashyap, Founder of INDmoney, highlighted that the historical challenges of accessing loans against mutual funds have hindered widespread adoption. Complex systems and a lack of seamless access had previously limited this financial tool. However, INDmoney, which oversees ₹90,000 crore in mutual fund assets, is well-positioned to drive the adoption of Insta Plus. The app aims to provide users with a transparent and intuitive experience, ensuring that borrowing against mutual fund investments becomes a more accessible and efficient process.

Empowering Financial Lives with Insta Plus

Insta Plus is designed to improve the financial lives of consumers by offering a solution that balances immediate liquidity with long-term investment growth. By making loans against mutual funds more accessible, INDmoney is helping users avoid the opportunity cost of liquidating investments, all while offering a convenient and flexible loan product. With its streamlined process, wide credit limits, and consumer-friendly terms, Insta Plus stands out as a valuable tool for navigating both immediate financial needs and long-term wealth management.