# Are there any Interest charges while pledging shares

**URL:** https://tradingqna.com/t/are-there-any-interest-charges-while-pledging-shares/129965
**Category:** Brokers
**Created:** [April 20, 2022, 9:09am UTC](https://tradingqna.com/t/are-there-any-interest-charges-while-pledging-shares/129965 "2022-04-20T09:09:25Z")
**Posts on this page:** 1
**Showing post:** 12

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### Author: ![Meher\_Smaran](https://tradingqna.com/user_avatar/tradingqna.com/meher_smaran/32/45882_2.png) [@Meher\_Smaran](https://tradingqna.com/u/Meher_Smaran)
#### Post date: [July 5, 2023, 5:29am UTC](https://tradingqna.com/t/are-there-any-interest-charges-while-pledging-shares/129965/12 "2023-07-05T05:29:15Z")

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Hi @Shaik_Mohammad_Ali

> [@Shaik\_Mohammad\_Ali](#):
>
> Can u please explain about pledging of shares

In simpler terms, Pledging is basically taking loan from your broker against the securities that you own.

You can read more on this here : [What is pledging, and how does it work?](https://support.zerodha.com/category/console/portfolio/pledging/articles/what-is-pledging)

You can also learn more about Pledging by checking out this TradingQ&A thread:

> [@What is pledging?](https://tradingqna.com/t/what-is-pledging/7195):
>
> Why do people pledge? What is cost of pledging? Can margin from pledging be used for buying more stocks, buying/selling F&O? Can margin from pledging be used for buying more stocks, buying/selling F&O?

> [@Shaik\_Mohammad\_Ali](#):
>
> in what senario do we incur interest cost from the broker.

Related to Pledging:

> Exchanges stipulate that for F&O positions, 50% of the margin needs to compulsorily come in cash or cash equivalent collateral, and the remaining 50% can be in terms of non-cash collateral margin. If sufficient cash margin is not maintained and the shortfall is funded by the non-cash collateral, there will be a delayed payment charge of 0.035% per day or 12.5% per annum on the shortfall in the cash margin requirement.

> **[What does 'Delayed payment charges' entry on the funds statement mean?](https://support.zerodha.com/category/console/ledger/articles/interest-charges)**
>
> What does 'Delayed payment charges' entry on the funds statement mean?

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