Zerodha Capital - Updates

General
21

Slab wise interest will be rolled out with the 3 year tenure itself. Won’t be for the current loans, only for the new ones.

The 11% interest is floating rate.

1 Like
22

Looking forward to the rollout update Esha.

Appreciate your quick responses/inputs.

Have a nice day ahead. Cheers. Thank you.

2 Likes
23

Hello @Esha Hope you are doing well. I have a few questions regarding the Loan Against Securities (LAS) product and would appreciate your clarification to ensure I use it effectively.

  1. Tenure and Interest Rates: I understand that a 3-year tenure and variable interest rate/slab features are now available. Could you please help & confirm these details?

  2. Auto-Debit for Interest Payments: Is there an option to set up auto-debit for monthly interest payments, or is the process manual?

  3. Top-Up Loans: If the value of pledged shares increases or additional payments are made, can I avail a top-up loan for 45% of the increased value? What is the process for this?

  4. Optimal LAS Usage:
    a. Should I pledge all securities upfront to receive a 45% sanction limit and disburse funds as needed, or pledge securities only for immediate needs and add more later as required?
    b. When pledging additional securities later, is this considered a top-up loan or a new loan?
    c. How do you differentiate between a top-up loan and 1 more new loan, and what is the impact on the loan tenure in each case?
    d. If the 50-script limit is reached and additional securities are pledged, is this treated as a top-up loan?

  5. Breaching Sanctioned Limit: The FAQ mentions a ₹500 processing fee plus stamp duty if the sanctioned limit is breached while taking a top-up loan. Could you clarify when this applies → is it implying a new loan ?

  6. Disbursement Process: My goal is to pledge shares easily and access disbursements without additional documentation/cost. What is the ideal process to achieve this?

Added 1 more
7. Can you please help & update LAS calculator for 3 year as well and also if it can show per month interest will be helpful.

Additionally, please share any relevant insights or best practices for managing LAS effectively. Thank you for your assistance. I look forward to your prompt response.

1 Like
24

  1. That’s correct, we’ve launched a 3 year loan tenure for all new loans, with slab-wise interest rates.

  2. It’s manual for now. But we’re working on mandates, and we’ll keep you posted when
    we take it live.

  3. Yes, you can choose an additional disbursement in this case. You can write to us on [email protected], and we’ll look into this. We’re working on giving you an option to choose the additional disbursement from the portal itself.

  4. a. You’ll need to pledge as much funds as you need; there is no option to choose the
    disbursal as and when needed. You will need to pledge accordingly.
    b. This is a top-up loan. You cannot have multiple loans with us at the same time.
    c. You can only take a top-up loan which will essentially have to be paid back within the
    same tenure as your initial loan. A new loan can be taken only if the current loan has
    been closed. The loan tenure does not change for a top-up loan.
    d. The 50 scrip limit is for one day. And yes, it is considered a top-up loan every time you
    take a new disbursement.

  5. No, this is not a new loan, it is a new sanction. It will be under the same loan ID with the same tenure. In any case, the loan ID or the tenure will not change. It is only possible if you close the current loan and open a new one.

  6. Hmm, documentation-wise, we’ve already made this as easy as it can get. We’re working on a feature where you can choose to take a disbursal instantly; will keep you posted on this. Regarding the cost, there’s an operational cost involved every time we process a disbursement. And we only charge 0.25%, which a cap of Rs.25,000. However, I’ve noted your feedback. Will bounce this off our team.

  7. Thanks, informed the team to update this, and for slab-wise rates. We’ll see if we can show the interest amount per month.

We’ve been quite vocal about this - the idea behind launching the LAS product is to offer customers a place to consolidate all loans at one place, and to help avoid scammy debt traps. All of this while building your credit score. A few suggestions to manage LAS well:

  1. Only borrow/pledge for how much you need and ensure you have a clear repayment plan.
  2. Keep track of your LTV to avoid LTV calls.
  3. Select several stocks from your portfolio instead of just one to avoid getting unnecessary LTV calls.
  4. Select mutual funds along with stocks in your portfolio to avoid getting unnecessary LTV calls.
  5. Make sure the interest payments are made on time.

Thanks for the feedback, do reach out to me on DM if you need any assistance.

6 Likes
25

Earlier, I had a Loan, and the tenure was 1 year. After Sep 2025, whether the tenure will be the same 1 year for my existing loan, or it will be 3 years from the date of the loan?

26

The tenure will not change for existing loans if you’ve taken a loan before Sep 1, 2025. Only new loans taken from Sep 1, 2025 will have a tenure of 3 years.

4 Likes