Interest payments must be made between the 1st and 7th of every month through the Zerodha Capital dashboard. If the payment is not made, or is only partially paid, penal charges are applied on the overdue amount at 18% per annum plus GST until the interest is paid.
How the penalty is calculated
The penalty is charged on the overdue interest for the number of days the payment is delayed.
Example
- Interest due: Rs. 1,000
- Due date: 7 February
- Payment made on: 11 February
The delay is 3 days (8th, 9th and 10th February). Penalty = Rs. 1,000 x 18% x (3 / 365) = Rs. 1.48.
Grace period
| Loan type | Grace period |
|---|---|
| Demand loan (taken before 01/09/2025) | 30 days |
| Term loan (taken on or after 01/09/2025) | 7 days |
Credit reporting
Zerodha Capital submits credit information to Credit Information Companies (CICs) on the 9th, 16th, 23rd and last day of every month, as per the applicable reporting schedule. Delays are therefore visible on your credit report.
If the interest remains unpaid for 90 consecutive days, the pledged securities may be confiscated and the loan closed.