Loan against securities

#1

Currently, I can pledge only shares in Zerodha and use it for margin trading without paying any interest. I saw news item where Zerodha will start Loan Against Securities, where in I will get money against lending my securities/mutual funds and withdraw that money. My question is whether there will be a feature to pledge mutual funds and just use it for margin trading without paying any interest.

How to pledge mutual funds for margin for trading F&O?
#2

Yes, pledging MF like stocks for trading F&O is coming soon.

#3

Can someone share some info on this:
How do we pledge
Costs, charges etc that are involved
Pros & cons
Why & when to use this option

#4
#5

Hello Nithin,

Any updates on pledging MF’s Feature?

Thanks.

1 Like
#6

Pledging of liquid MF is needed at Zerodha because of the very poor returns provided by liquidbees.

Full service brokers have been accepting mutual fund units as collateral for fno since many years.

1 Like
#7

Thanks for the update. Will it be available in 2019 or will have to wait more?

#8

Can u name the brokers providing this facility ?

#9

Can u mention the name of brokers providing this facility?

#10

This page from nse describes what all kinds of collaterals are allowed for margins.

https://www.nseindia.com/products/content/equities/equities/liquid_assets.htm

#11

Any update @nithin
Planned to switch broker due to MF pledging

1 Like
#12

#13

In Zerodha terms,
Soon = a couple of years
Two weeks = 6-12 months

2 Likes
#14

Loan against share is available with many banks as Over draft . the interest charged is around 10 -11% for the amount used . somehow if less than 50% is used bank will not be happy and you have to bear constant request calls to use the limit .

#15

There is no limit like 50 percent in major banks , they won’t bother you it is up to you on how much to use

#16

I did have LAS account with a Private bank but as i was not using much from the sanctioned limit , there were constant calls from bank ranging from branch level officers/manager to even regional level officer /manger which ultimately made me close the account itself. This is my personal experience .

#17

2 months means another reply of same 2 months.

#18

Which broker you are planning to switch?

#19

Mothilal or angel