Yenmo, a fintech platform which provides instant loans against mutual funds secured $500,000 in a seed funding round led by US-based start-up accelerator Y Combinator.
The company founded by Aryan Agarwal and Ashutosh Purohit enables users to borrow against their investments at a flat 10.5 per cent interest rate. It provides facility to see all investments of users in a real time. Users can select assets they want to buy and receive funds directly into their bank accounts.
Users have the option to pay only the interest during the loan tenure and can repay the principal amount whenever they have the funds available. Yenmo also refrains from conducting a credit-score check and offers loans based on users' mutual fund investments.
The platform provides a full-stack API solution for other companies to integrate loans against mutual funds into their products. Furthermore, it intends to introduce new products such as loans against stocks, insurance, digital gold, and land, The Economic Times reported.
"We aim to bring in a suite of lending options that were only accessible to high net worth individuals previously, now to every Indian consumer," Purohit, chief executive officer and cofounder, Yenmo, said in a statement."
With Yenmo, they will no longer have to sell their mutual funds. Instead, taking a loan on it is a much better way to keep the investments intact, which will help your money grow in the long term while providing access to funds for immediate requirements," he added.
