Zerodha's Nithin Kamath in his latets post on X has backed loan against shares business to tackle high-interest debts. He also revealed that the loan against shares business operated through Zerodha Capital has crossed Rs 500 crore, marking a significant milestone for a product the brokerage has rarely spoken about publicly.
In a post on X, Kamath said the company had kept a relatively low profile about the LAS offering for a variety of reasons, including regulatory considerations. However, he explained that the rationale behind offering the facility is straightforward: it is a secured lending product and can be a more cost-effective alternative for investors compared to high-interest borrowing options.
Our Loan Against Shares (LAS) business just crossed Rs 500 crores.
— Nithin Kamath (@Nithin0dha) February 25, 2026
It's a business that we hadn't spoken about much for a long time, for a variety of reasons, including regulatory. But the reason why we offer LAS via @zerodhacapital is that it's a secured product.
The other…
A loan against shares allows investors to borrow money by pledging their existing shareholdings as collateral. Since the loan is backed by securities, interest rates are typically lower than unsecured products such as personal loans or credit card borrowings. The ownership of the shares remains with the investor, although they are pledged to the lender until the loan is repaid.
Kamath said one of the key motivations behind offering LAS was to help clients refinance expensive debt. Many individuals, he noted, continue to take personal loans or roll over credit card dues despite having sizeable investment portfolios. “You'd be shocked at the number of people with investments who haven't heard of LAS and end up taking personal loans,” he said.
Kamath's post suggests that while LAS may not be the most visible part of Zerodha's business, it is quietly becoming a meaningful one, both as a revenue stream and as a financial alternative for investors seeking cheaper liquidity options.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
