Hi @Karthik. Thank you for the great product. My only concern is the workflow is not too clear after you clear your loan.
I have currently paid off my loan but there have been no steps taken to automatically unpledge my holdings. I just got off the phone with customer care and they told me to fill a form a send it back? That does not make sense for an online product.
Request your looking in into this and help with unpleding my stocks.
Regards,
@Shrey_Singhal the process is quite straightforward. The moment you click on close loan in the dashboard, you would be prompted to make a repayment (to the extent of the principal + int outstanding). Once you make the payments, we get a prompt notifying that a customer is opting to close the loan.
Our backend team checks if everything is in order and proceeds to unpledge your shares (unpledge is a manual process for now).
Once done, shares will reflect in Kite (unpledge day + 1), and you are free to sell these shares.
As of today, there is no formal communication to the client intimating that the loan has been closed, but this is something we will do soon.
Apologies for this, I think there was confusion around this. I’ll check why this happened and ensure this does not repeat. Thanks.
On what basis you consider as eligible loan amount,either on INVESTED AMOUNT or on CURRENT MARKET rate?
The current value of your investment is what is considered.
Good for zerodha’s business, congrats. Was this planned before SEBI guidelines to reduce margins or after?
We procured the NBFC license in 2018, took a while to get the product up and about.
How to pay partial amount to loan availed from Zerodha?
As there is increased volatility in markets after Corona , There may be sell off in market some times Kindly make available for pledging, that client should choose required LTV (less than 45% as per his wish but not >45%) where no of shares amounts more than required amount, so that he can be on safe side even the market falls
Ex: If I want 1.5 L, I would like to pledge 2.5 L valued shares so that I can be on safe side during huge volatility in markets
After availing the loan, your dashboard changes and you’ll see an option to make a repayment. You can choose to either make a repayment or fully close the loan.
If there is an LTV, you will be notified and you can pledge the additional shares at that point.
Interest rate is very high. Nowadays personal loans are available at 10.99%. Even after collateral we are getting 10.5% interest. 🤦
Sure. This is the cost of funds for us. Btw, you also need to consider a ton of other charges NBFCs levy for a product like LAS and arrive at the net applicable rate. We’ve kept the product very straight forward and transparent. No hidden charges.
Thanks for quick response. Agree with your point. Still not finding any edge zerodha LAS is having over other products. Will wait for rate cut. Though It’s really a simple and elegant product.
They may start with those high interest rate but it won’t succeed in any future. Who will pledge their shares at more than 50% haircut with above 10 % rate. Maybe few small invertors (newbies) take it but large holder always try to sell securities instead paying those high rate.
It’s my opinion only, if security falls the borrower has to suddenly add more funds that will worsen the borrower. A lot of perils.
This is like selling your left kidney to fund the right kidney transplant 
How can I pledge additional shares without increasing the loan amount?
This is the edge. Its transparent, zero hidden charges, and straightforward to use 
Just to let you know, average rate for loan against gold goes upwards of 12%, sometimes even at 18%.
Yes, if the value of the security falls, then the client has to either repay principal or add more funds, this is as per RBI’s norms.
Haircut for gold is almost above 80% and volatility in gold also less compared with equity. If I take any gold loan maybe yearly ones the lender may Call for addition of funds but in your model weekly ones the lender has to contact the borrower for addition of funding. All iam saying here you guys are not taking any risk. Just my opinion.
But your charges are very low for any kind of loans and complete online initiative also big positive. Maybe your product will attract mf investors. Wait for some correction in market so people prefer to taking loans instead of selling. All the best.