cc @Karthik
What about mutual funds? Do I get loan on that
Hello @satya2, The interest rate for LAS loan is 10.5%. The interest rate is not constant and is subjected to change depending on the prevailing economic situation.
Hi @Kaushik_Reddy, at present, we are in beta and allow only group 1 stocks to be pledged. We will start with MF soon.
RBI only permits a particular list of Group 1 securities to be allowed for collateralising for a loan by NBFCs. Zerodha Capital has its own list of curated scrips from the Group 1 list of securities, as per its risk management policies, which are eligible and permitted for the loan against securities product. The approved list of securities can be found here
Ok. Is there a policy regarding how many days of advance notice would we get as borrowers before any rate change? @Harshal_S_Katare
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also @Harshal_S_Katare I keep getting this loader. I want to repay a part of the loan I had taken. Please fix
Hi @satya2, Any changes with respect to your loan shall be brought to your notice immediately. Zerodha shall ensure that reasonable notice and information is provided towards clients with respect to any such changes.
This has been reported, team is checking on this, we will get back to you with a resolution shortly, appreciate your patience in this regard.
Hi @satya2, this issue is now resolved, request you to kindly check. Any inconvenience caused is regretted.
Hi @Harshal_S_Katare please confirm what is meant by minimum amount due. around the end of the month I see a minimum payment due amount in zerodhacapital.com
and I have been paying that for the past couple of months
is that the total interest due for the month?
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.
2 Likes
@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).
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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Unfortunately, I cannot commit a timeline here. All I can say is soon 
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We are looking into this. But here are two things to note wrt the ledger -
- Interest is posted on month end for the entire month (only interest, not principal)
- 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.
- After the top up disbursal, interest is calculated on the new outstanding.