Acquisition of Salter Technologies by DSP Finance Enhances Digital Lending Capabilities

In a significant development in digital lending, DSP Finance, the non-banking financial company (NBFC) branch of DSP Group, has acquired Salter Technologies, which operates the digital lending platform Volt Money. This platform is known for offering loans secured against financial assets, including Loans Against Mutual Funds (LAMF). The union of these entities is poised to strengthen their positions in secured lending.

With this acquisition, DSP Finance offers its robust balance sheet, effective risk management strategies, and institutional framework, while Volt Money contributes its advanced digital lending platform along with a well-established distribution network.

Benefits of Volt Money’s Digital Lending Platform

Volt Money provides an efficient solution for customers wishing to borrow against their mutual fund investments, facilitating fund disbursement in as little as five minutes, contingent upon process and approval protocols. This acquisition affords DSP Finance the opportunity to broaden its digital lending services targeting financial assets and cater to a clientele spanning the mutual fund and wealth management sectors.

Growth and Development in Digital Lending

Since obtaining its NBFC registration in July 2024, DSP Finance has significantly expanded its footprint in digital lending. The organization has successfully enrolled over 1.8 lakh retail customers and developed a loan portfolio valued around Rs 4,000 crore.

Understanding Loans Against Mutual Funds (LAMF)

Loans Against Mutual Funds (LAMF) offer investors vital liquidity against their mutual fund shares without requiring them to liquidate their positions. This facility aids investors in satisfying short-term financial requirements while maintaining their investments in long-term assets. Given that mutual funds and similar financial instruments constitute an increasing proportion of the wealth held by Indian households, loans secured by such assets are evolving into a viable alternative source of credit.

The Founders of Volt Money and Their Mission

Established in 2022 by Ankit Agarwal, Bharat Lamba, and Lalit Bihani, Volt Money aims to provide individuals the ability to borrow against their mutual fund assets. The company is dedicated to enhancing digital access to credit against various financial assets.