Mukesh Ambani-backed Jio Finance Limited (JFL) has entered the digital lending space with its new Loan Against Securities (LAS) offering, allowing customers to borrow up to ₹1 crore by pledging shares and mutual funds. The service promises instant disbursal within 10 minutes through a fully digital process.
Key Features of Jio’s Loan Against Securities
- Amount & Tenure: Loans up to ₹1 crore with a repayment period of up to 3 years.
- Interest Rates: Starting at 9.99%, customized based on the borrower’s risk profile.
- No Foreclosure Charges: Customers can prepay without penalties.
The LAS product includes Loan Against Shares and Loan Against Mutual Funds, enabling users to unlock liquidity without selling investments. Jio emphasizes that this helps customers maintain long-term financial goals while addressing short-term needs.
How Jio’s Digital Loan Works
The entire process—from application to disbursal—is handled via the JioFinance app. Users can pledge demat-held securities, receive instant approval, and access funds directly to their accounts. The app also offers real-time tracking of loan status and repayment schedules.
Strategic Push for Digital Financial Services
Kusal Roy, CEO of Jio Finance Limited, stated, “This launch aligns with our mission to make financial services accessible and customer-centric through innovation.” The move strengthens Jio’s position as a full-stack digital financial platform, complementing existing services like UPI payments, insurance, and corporate lending.
Market Response
Following the announcement, shares of Jio Financial Services surged, reflecting investor optimism. The company’s assets under management (AUM) have shown steady growth in recent quarters.
Expanding Financial Ecosystem
Jio Financial Services, part of Reliance Industries, is rapidly diversifying its portfolio. Recent initiatives include increased capital infusion into JFL and a joint venture to offer wealth management solutions. The JioFinance app now integrates services like digital gold, savings accounts, and investment tracking, positioning itself as a one-stop financial hub.
With traditional banks often requiring lengthy documentation, Jio’s instant LAS product caters to India’s growing demand for quick, hassle-free credit. The offering is particularly beneficial for investors seeking liquidity during market volatility without exiting long-term positions.
Looking Ahead
Jio’s entry into secured digital lending signals intensified competition in India’s NBFC sector. The company’s focus on technology-driven solutions could disrupt traditional lending models, especially among retail investors and small businesses.