Chennai, Mar 5: South Indian Bank (SIB) has announced the launch of its digitally integrated Loan Against Mutual Funds (LAMF) offering, enabled by smallcase’s technology infrastructure. With this launch, SIB becomes among the first banks to provide a fully integrated LAMF solution to its Lending Service Provider (LSP) partners, enabling seamless access to secured credit for investors through digital platforms.
The new offering allows customers to avail loans against their mutual fund investments at an interest rate starting from 9.99% per annum, in compliance with regulatory guidelines. The facility is available to both South Indian Bank’s existing customers and users of digital wealth platforms connected through its LSP partner network.
Powered by smallcase’s secured credit stack, the solution features a native, API-led integration that enables a completely digital user journey—from pledging mutual fund units to loan disbursal and release. This infrastructure allows fintech apps and digital ecosystems to embed secured lending capabilities directly into their platforms.
For customers, the offering provides an efficient way to unlock liquidity from mutual fund holdings without redeeming long-term investments. For digital wealth platforms integrated as LSP partners, the solution enables direct access to South Indian Bank’s secured lending infrastructure through a compliant and scalable framework.
Speaking on the launch, Mr. Sony A, SGM & Chief Information Officer, South Indian Bank, said,
“At South Indian Bank, expanding access to responsible and transparent credit solutions is central to our priorities. Our partnership with smallcase enables us to offer Loan Against Securities on mutual funds through a fully digital workflow, making credit more accessible to investors. We are also exploring expansion into demat securities and other financial assets while collaborating with multiple digital platforms to unlock innovative use cases.”
Commenting on the collaboration, Mr. Vasanth Kamath, Founder and CEO, smallcase, said,
“At smallcase, we build technology platforms that enable financial institutions to offer investment and wealth products digitally. We are excited to power South Indian Bank’s LAMF offering across its properties and partner ecosystem. We believe secured credit will play a vital role in helping investors access instant liquidity in a flexible and cost-effective way.”
smallcase’s modular, API-first secured credit infrastructure enables banks and regulated lenders to launch loan-against-securities products across multiple distribution channels. The platform supports digital onboarding, pledge management, monitoring, and release workflows within a compliance-aligned framework, helping financial institutions scale secured lending efficiently.