Loan against securities by Zerodha Capital

Personal finance
1

Hi community members,
I want to know details about Loan against securities by Zerodha Capital.
Suppose I am taking loan of 5 lakh against MF units, what will be effective interest rate?
Like 10.5% + Confiscation charges (Equity mutual fund) 1.5% of the sell value + |Pledging (per security)|₹32|
|Unpledging (per security)|₹32|
|Invocation of pledge|₹20|
.
Does confiscation charges apply agains after 1 year for auto-renewal?
For stocks, per security 32 means per scrip like COALINIDA? and if I want to inc. loan then will it be applicable again?
Does it effect positively CIBIL score if use good?

If anyone has any real experience, i will appreciate if you can share your experience.

Finally, I will appreaciate if Zerodha can share video on youtube with one example from start to end for MF and stocks.
Thanking you in advance.

2

I want to add one more thing.
I think it will be great if they can add calculator for this like Brokerage calculator – Zerodha.
@nithin Sir, can you look into this?

3

Hi,

Here is the list of charges applicable (non-refundable) when availing LAS:

  1. Processing fee per loan ₹436

  2. Confiscation charges (Equity) 0.7% of the sell value ( confiscation charges are only applicable when the securities pledged are confiscated due to LTV reaching higher than 50% or interest unpaid for three consecutive months)

After taking a loan you can renew your loan for an additional year, after which you will have to close the loan, but you will always have the option of availing a fresh loan. Confiscation will only be triggered when you fail to pay the interest or principal amount past the due date of the tenure.

  1. Confiscation charges (Equity mutual fund) 1.5% of the sell value (confiscation charges applicable as mentioned above)

  2. Interest rate (subject to change from time to time) 10.5% per annum (flat annualised)

  3. Penal charges (subject to change from time to time) 18% per annum

Yes, it impacts the credit score positively.

We will work on this feedback of creating a video tutorial :slight_smile:

Also, we do have an interest calculator in place, linked here.

You can visit our FAQ page for any additional concerns if any.

4

Thank you for clarifying.
Can zerodha add details in loan calculator with detail charges similar to that brokerage calculator?

5

We will check with our technical team if this is feasible.