South Indian Bank and smallcase Partner to Expand Secured Credit Access Through SIB Digital Loan Against Mutual Funds

KOCHI:
South Indian Bank (SIB) today announced the launch of its digitally integrated Loan Against Mutual Funds (LAMF) offering, enabled by smallcase’s technology infrastructure. The partnership allows SIB to extend secured credit against mutual funds at an interest rate of 9.99% p.a., in compliance with regulatory guidelines, to both its existing customer base as well as the customers of digital wealth platforms through its Lending Service Provider (LSP) network.

Using smallcase’s secured credit stack, SIB has built a native, API-led integration that enables an end-to-end digital journey for the user that includes pledging, disbursal and release of mutual fund units. With this launch, SIB becomes among the first banks to offer a fully integrated LAMF solution to its LSP partners, enabling digital ecosystems and fintech apps to embed secured credit seamlessly within their offerings.

● For South Indian Bank customers, the offering provides a streamlined way to unlock liquidity without redeeming long-term investments.
● For digital wealth platforms integrated as LSP partners, the solution enables direct access to SIB’s secured lending infrastructure through a compliant and scalable framework.

“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 offering on mutual funds in a fully digital workflow making credit more accessible to investors. We are looking forward to expanding this to demat securities and other financial assets and are also working with multiple digital platforms to unlock innovative use cases.” said Sony A, SGM & Chief Information Officer, South Indian Bank

On the integration with SIB, 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 about enabling South Indian Bank’s LAMF offering across its properties and partners, including the smallcase ecosystem. We strongly believe that secured credit is a key part of every investor’s toolkit to avail access to instant liquidity in a flexible and cost-effective manner.”

Built as a modular, API-first infrastructure layer, smallcase’s secured credit stack enables banks and regulated lenders to launch loans against securities products across multiple distribution channels — including their own customer base and third-party digital wealth platforms. The solution covers digital onboarding, pledge workflows and management, monitoring and release mechanisms within a compliance-aligned framework, allowing financial institutions to scale secured lending efficiently.