Jio Financial Services Unveils Digital Loan Against Securities, Boosting Share Price
On Tuesday, shares of Jio Financial Services saw an impressive rise of over 3%, following the announcement that its subsidiary has launched a fully digital Loan Against Securities (LAS) option for customers. The stock surged as high as 3.93%, reaching ₹221.90 per share on the BSE. This innovative financial product allows users to tap into their investments, including shares and mutual funds, to secure loans quickly and conveniently.
Launch of a Fully Digital LAS
Jio Finance Limited (JFL), the non-banking financial company (NBFC) under Jio Financial Services, has introduced this comprehensive digital solution, enabling customers to access loans in as little as ten minutes. According to a regulatory filing made by the company on April 8, the LAS facility will be seamlessly available through the JioFinance app, featuring options for both Loan Against Shares and Loan Against Mutual Funds.
Competitive Loan Offers
Customers can secure loans of up to ₹1 crore, with interest rates commencing at an attractive 9.99%, tailored according to individual risk profiles. These loans come with a maximum tenure of three years and notably, no foreclosure charges apply.
Vision for Financial Services
“The introduction of the Loan Against Securities is a crucial part of our digital transformation strategy, designed to redefine how customers access and engage with financial services,” stated Kusal Roy, Managing Director and CEO of Jio Finance Limited. “By prioritizing innovation and enhancing the user experience, we aim to make financial services more efficient and user-friendly.”
Stock Performance Overview
Despite the recent rise, Jio Financial Services shares have experienced a 27% decline year-to-date (YTD) and a staggering 35% drop over the last six months. In a broader context, the stock has plummeted by 40% in the past year. As of 2:10 PM, Jio Financial shares were trading 3.86% higher at ₹221.75 on the BSE.
Key Takeaways
- Launch Date: April 8, 2023
- Loan Amount: Up to ₹1 crore
- Interest Rates: Starting at 9.99%
- Tenure: Maximum of three years
- Digital Platform: JioFinance app
Jio Financial’s commitment to innovation and customer-centric solutions positions it as a forward-thinking player in the financial services sector. As they continue to roll out digital offerings, customers can anticipate more accessible and efficient financial solutions in the future.
