South Indian Bank, smallcase launch digital LAMF offering

As Indian banks accelerate their digital lending strategies, partnerships with fintech platforms are becoming critical to expanding access to credit while maintaining regulatory compliance. South Indian Bank (SIB) has taken a step in this direction by partnering with investment platform smallcase to launch a digitally integrated Loan Against Mutual Funds (LAMF) offering.

The collaboration enables South Indian Bank to provide secured credit against mutual fund holdings at an interest rate starting at 9.99% per annum, allowing investors to unlock liquidity without redeeming their long-term investments. The offering is available not only to the bank’s existing customers but also to users of digital wealth platforms through South Indian Bank’s Lending Service Provider (LSP) network.

At the core of the initiative is smallcase’s secured credit technology stack, which allows the bank to deploy a fully digital lending journey through native API integrations. This enables investors ...