Loan Against Securities (Beta)

Hello @satya2. Yes, the minimum amount due which you see on your dashboard is the total interest due for the month.

Do visit the FAQ section to learn more about LAS.

Hello,
For me the minimum amount due is displayed very oftenly.Like half of the interest to be paid by 18th Dec and then rest by 25 or 30th of month like that.
I have paid full interest in two parts by 18th and 30th Dec as per the instructions.
It happened for last couple of months.

Today i see 30% of interest amount to be paid by 08th Jan.This one looks like i am paying in advance.
Please let us know if we can have a report of interest amount paid and total loan amount for that particular date.

Thanks

Hello @Mounica37,

LAS loans require you to service just the interest rate applicable on a month on month basis. There is no concept of EMI applicable to LAS loans. For example, if you have borrowed Rs.2,50,000/- at an interest rate of 10.5%, then the daily interest rate is –

10.5% / 365
= 0.0287%

The daily interest amount is –

0.0287% * 2,50,000
= ₹71.91/-

So for a month with 30 days, the interest amount applicable is –

71.91 * 30
= ₹2,157.534

You can click on the link given below to check your loans ledger.

Ledger: Kite - Zerodha's fast and elegant flagship trading platform

Do visit the FAQ section to learn more about LAS.

Apologies for the delay in response.

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@Mounica37 I’m not sure where you are seeing this. There is no minimum due amount wrt to LAS. Only the interest is applicable (please check @Harshal_S_Katare 's calculation).

It will help if you can point out where you are seeing these numbers.

I thought peer to peer lending was illegal no? Sky high interest rates with sky high NPAs; it was doomed to be halted. As a customer I am happy to see Zerodha exercise prudence rather than reckless exuberance.
I had a LAS account with Axis where they charged me 11.5% (which was preferential rate - don’t go by what they advertise; it is only if you withdraw the max loan). I shutdown that account when in Mar 2020, it took them a royal 2 weeks and several phone calls/follow ups to unpledge my holdings by when my pledged stock was already down 30%-40%; so yes convenience of clicks matters and I would pay a premium for that.
Finally good to see your views on following the rules; gives me much more confidence that my capital is safe. That kind of circus is precisely what we call DHFL and Yes Bank right now.

Any updates on the partial un pledge? When can we expect the same?

@Harshal_S_Katare thanks for the Ledger link.This is giving info what i am looking for.

@Karthik I see this on Loans Dashboard.I am talking about interest (which i expected to pay only by 5th of every month.Interest for previous month. what i see on Dashboard is to pay some partial amounts on random dates of a given month).

image

I have paid partial amounts last month as below:

Please note that this is NOT A MAJOR ISSUE if interest amount calculated is appropriate and we are not charged with penalty.

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P2P lending is not illegal, you can find RBI’s master directions for P2P lending here.

Thanks!

Unfortunately, I cannot commit a timeline here. All I can say is soon :slight_smile:

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We are looking into this. But here are two things to note wrt the ledger -

  1. Interest is posted on month end for the entire month (only interest, not principal)
  2. When you take a top up, before the disbursal of the top up amount, interest is calculated up until that point and added to your ledger.
  3. After the top up disbursal, interest is calculated on the new outstanding.

Hello All,
I would like to pledge some shares (which are not part of Approved list of Zerodha) with other Banks.
Can someone share your views which one is best and safe along with unpledge experience with them.

Sorry Team Zerodha for using this space to get some details for personal view.

My unpledge experience with Axis Bank has been very good. With HDFC Bank it has taken a few more days than expected. Maybe it is an aberration

Just wanted to let you know that this is a huge huge huge inconvenience. I wanted to sell some shares but am forced to pay off everything which takes a couple of days in that letting me miss my opportunity and also that I have to find sufficient funds to close it. This one flaw is making the entire experience bad. Plus it has been so long and many other brokers seem to readily allow it, why is it so hard for Zerodha alone then? Why don’t you work a bit more quickly on things that really matter for the end-user?

Any plans to lend against etfs/mutual funds ?

Did you manage to get the loan from the bank? If yes, please do let us know how the process went :slight_smile:

I completely understand. We are at the last stretch, hopefully soon.

Equity MFs yes, very soon. Not sure about ETFs at this stage.

I took time to decide which Bank should i approach and finally took account with HDFC yesterday.
just now i realized i need to transfer shares from CDSL to NSDL and it is costly (2500 Rs) through online.
I need to go offline way which is again time taking process :roll_eyes:
Will update here how the process goes thru while applying loan.

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Sure, thanks for that.

Hi @Karthik, my wife availed the LAS facility just now. We required funds for at max few weeks. We know we can repay part of it or close the loan altogether to get the securities unpledged. We may be requiring such loans off an on basis for few days to few weeks max. We went through the blogs and got to know that HDFC and probably few others provide overdraft facility with LAS, means approved loan say is 5 lacs, you take out whatever is required, pay interest ONLY on utilised loan, repay in full or part of and may keep on repeating the same. It suits Our kind of requirement. Now my questions are:

  1. Is there a possibility that in association of idfcfirst bank you may also provide the same facility of overdraft in near future?

  2. One may argue that for our kind of requirements, we may take repeated loans and repay when money is not required. But what pinches here is the required upfront payment of roughly 440 Rs per episode, apart from inconvenience of repeating the process again and again.I have thought of a little “hack”. Is it possible we don’t “close” the loan totally; instead payback most of it and keep the loan book running with bare minimum amount and keep topping up as and when required?

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