PhonePe Launches Loans Against Mutual Funds for Users

PhonePe now lets people borrow money using their mutual fund investments as collateral.

This means you can get a loan without selling your investments.

The service is offered with help from DSP Finance.

To get a loan, you go to the 'Loans' section in the PhonePe app, select the amount, complete KYC, and set up automatic payments for interest.

You then pledge your mutual fund units, and the loan is sent to your bank account.

You only pay interest on what you borrow, not the entire loan amount.

You can repay the loan whenever you want, and then borrow again.

This helps people get money when they need it without affecting their investments.