The applicable interest rate depends on the loan amount you avail. These are the current slabs.
| Loan amount | Interest rate (per annum) |
|---|---|
| Rs. 25,000 to Rs. 50 lakh | 11.00% |
| Above Rs. 50 lakh to Rs. 1 crore | 10.75% |
| Above Rs. 1 crore to Rs. 5 crore | 10.50% |
| Above Rs. 5 crore to Rs. 10 crore | 10.00% |
Interest rates are fixed at the time of availing the loan and are based on the initial loan amount. Taking top-up loans or making repayments does not change the rate of your existing loan, even if the total moves into a higher slab.
Can the rate change during the tenure
The rate on your loan is typically fixed, as specified in your loan agreement. It may, however, be reviewed periodically based on market conditions, RBI monetary policy, Zerodha Capital's cost of borrowing, and your credit profile.
If the rate is revised:
- The change takes effect only from a future date.
- You will be notified at least 21 days in advance.
- If the rate is increased, you can repay the loan early without any prepayment charges.
Is the rate linked to MCLR
No. MCLR (Marginal Cost of Funds Based Lending Rate) is the minimum rate at which banks can lend, introduced by RBI in 2016 to replace the base rate system. Zerodha Capital's interest rates are not benchmarked to MCLR. They are determined internally based on business policies and market conditions, and reviewed periodically.