LAMF Lender Disclosure

1. Purpose of This Disclosure

The purpose of this document is to:

• Clearly explain the role of the lender and the platform
• Disclose key loan-related terms and risks
• Ensure transparency as per applicable regulatory and industry standards
• Help users make informed financial decisions

This disclosure does not constitute legal, tax, or financial advice.

2. Role of the Platform

• The platform acts as a technology service provider and facilitator.
• The platform does not provide loans directly unless explicitly stated.
• All loans under the LAMF facility are sanctioned, disbursed, and managed by RBI-registered lenders / NBFCs / Banks.
• Final approval of the loan rests solely with the lender.

3. Role of the Lender

• The lender is responsible for loan sanction, disbursement, servicing, and recovery.
• The lender determines:

• Loan eligibility
• Loan amount and margin requirements
• Interest rate and charges
• Tenure and repayment terms

• The lender maintains custody or lien over the pledged mutual fund units.

4. Nature of the Loan

• LAMF is a secured loan backed by pledged mutual fund units.
• The borrower retains ownership of the mutual fund units, subject to lien/pledge.
• The loan amount is determined based on the Loan-to-Value (LTV) ratio as prescribed by the lender and regulators.

5. Eligible Collateral

The following mutual fund units may be accepted as collateral:

• Equity mutual funds
• Debt mutual funds
• Hybrid mutual funds

Eligibility depends on:

• Fund type and risk profile
• Fund house and scheme
• Market value and volatility

Not all mutual funds are eligible for LAMF.

6. Interest Rates

• Interest rates may be fixed or floating, as determined by the lender.
• Rates may vary based on:

• Type of mutual fund pledged
• Loan amount and tenure
• Market conditions
• Borrower's risk profile

Applicable interest rates will be disclosed before loan confirmation.

7. Fees and Charges

The LAMF facility may include the following charges:

• Processing fees
• Documentation charges
• Penal interest for delayed payment
• Foreclosure or prepayment charges (if applicable)

All applicable charges will be transparently disclosed prior to loan acceptance.

8. Loan Tenure and Repayment

• Loan tenure is defined by the lender and may be:

• Short-term
• Overdraft-style / revolving credit

• Repayment may include:

• Monthly interest payments
• Bullet repayment
• Flexible repayment options

Failure to repay on time may result in penalties or liquidation of collateral.

9. Margin Shortfall and Liquidation Risk

• Mutual fund values are subject to market fluctuations.
• If the value of pledged mutual funds falls below the required margin:

• The lender may issue a margin call.
• The borrower must provide additional collateral or repay part of the loan.

• Failure to meet margin requirements may result in partial or full liquidation of mutual fund units without prior consent.

10. Risks Associated with LAMF

Borrowers should be aware of the following risks:

• Market volatility affecting mutual fund value
• Forced liquidation during market downturns
• Interest rate changes (for floating rate loans)
• Impact on long-term investment goals

LAMF is suitable only for users who understand these risks.

11. Regulatory Compliance

• LAMF is governed by applicable RBI guidelines, SEBI regulations, and other relevant laws.
• The lender complies with all regulatory requirements.
• Mutual fund pledging is facilitated through authorized depositories.

12. Data Sharing and Privacy

• User data may be shared with the lender, depositories, and service providers strictly for loan processing.
• Data handling is governed by the platform's Privacy Policy.
• Sensitive financial data is protected using industry-standard security practices.

13. No Guarantee of Loan Approval

• Submission of an application does not guarantee loan approval.
• The lender reserves the right to reject applications without providing reasons, subject to applicable laws.

14. Grievance Redressal

For loan-related grievances:

• Users may contact the lender directly using details provided at the time of loan sanction.
• Platform-level grievances may be raised via:

• Email: info@discvr.ai

Escalation mechanisms will be provided as per regulatory norms.

15. User Acknowledgment

By proceeding with the LAMF facility, the user acknowledges that:

• They have read and understood this Lender Disclosure
• They are aware of the risks involved
• They agree to be bound by the lender's loan agreement and policies

16. Amendments

This disclosure may be updated from time to time. Updated versions will be made available on the platform.

17. Disclaimer

This document is for informational purposes only and does not replace the loan agreement executed between the borrower and the lender. In case of conflict, the loan agreement shall prevail.

Important: Borrowers are encouraged to carefully review the loan agreement, sanction letter, and repayment schedule before accepting the LAMF facility.