I see that Kuvera provides up to 2 lakhs and Paytm Money provides it up to 50k.
Anyone that does it better?
nippon liquid fund supposedly have debit card facility. also its similar with most brokers as i guess its as per sebi regulation that they provide upto 50 k of instant liquidity for liquid funds
@nithin I had made this suggestion earlier as well -
Upon redemption of MF on Coin, can’t users be given an option, say 80% of redemption amount as instant margin (can also be withdrawn to the bank account) through loan against security. So that the investor doesn’t have to wait for T+1/2/3 for the redemption amount to be credited to Zerodha trading account by the AMC. This proposed “instant liquidity” on MF redemption isn’t available in the market on any platform and can be a real game changer.
E.g.
If I redeem units from a MF amounting Rs 2,00,000, instead of waiting for T+3 for the amount to be credited in Zerodha trading account, if while redeeming only Coin asks me if I want instant liquidity of say Rs 1,60,000 (after a haircut) as loan for T+3 days.
If I tick mark that option, the moment I press the redeem button, I have that margin of 1.6L available in my trading account. Instant liquidity. I can buy other MF or stocks with that money or withdraw it to my bank account.
Now, the AMC is certainly going to pay the redemption amount in T+3. So it’s a secured loan for Zerodha for 3 days for which it charges a nominal interest on 1.6L (instant liquidity) for those 3 days. A small amount to pay for such a handy and useful feature.
On T+3 when AMC credits Rs 2,00,000 to Zerodha trading account, Zerodha recovers Rs 1.6L + interest amount for 3 days from my trading account to pay off the loan and auto-closes it.
Thus, it a win-win for both Zerodha and investors.
I read in Moneycontrol that in 2020, the total AUM on Coin was Rs 5500 Cr. Now, you would be having the real numbers for daily average redemption amounts. To be very conservative, even if 1% of daily redemptions avail the instant liquidity as loan for T+3 days, it would be a good daily revenue generation opportunity for Zerodha through the secured loans for 3 days.
But to make this happen certain things need to be streamlined and made user-friendly. It could be an annual premium service, but one-time registration and paperwork that lasts forever like POA. It should not ask the investor to do paperwork at the time of redemption. At that time it should be a matter of just a tick on the check-box.
I know I may be sounding naive without the knowledge of how legalities work (but I’m sure that can be worked around), and I am hell sure that it’s would be a challenge for the tech team to implement this feature. But I can only see the worth of it for both Zerodha and investors.
There are two entities here - Zerodha broking and Zerodha capital (NBFC). Zerodha capital can give a loan only when the securities are pledged to Zerodha capital and not without it. Since the liquid fund has to be redeemed, this means there can’t be a pledge. If it gives a loan without securities, it is unsecured lending and securities or funds sitting in Zerodha broking can’t be legally blocked.
Zerodha broking isn’t allowed to fund customers as per SEBI regulations.
If Zerodha broking was allowed to fund this, we could offer same-day payout not just for liquid funds but across all stocks and MF (maybe at an additional cost as that funding will cost us).
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Amen to this feature! Exactly what I have in my mind.
Hopefully someday in the future. 
I re-read this sentence. So consider this case where I have already pledged other stocks and MF and the ones I am redeeming does not belong to the pledged assets, then in that case?
For e.g. say I have pledged Reliance shares worth 5 lakh. And I am redeeming UTI Nifty 50 MF worth Rs 2 lakh which is not pledged. Can in that case, this proposed instant liquidity feature work, giving me an instant margin as LAS, instead of waiting for T+3 for credit of redemption amount?
Nobody does it better
You could do it even today https://zerodhacapital.com/. But there is a cost to doing this. This can work like the way you want only if the broking entity could fund this.
