Zerodha SLB Lending rate

SLB lending rate

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The SLB lending rate is the annualised percentage fee the borrower pays to the lender. Set by market demand-supply on the SLB order book.

Typical range

ScenarioRate
Very high demand (high short interest)10-20%+ per annum
Standard5-10% per annum
Low demand3-5% per annum

What drives the rate

  • Short interest: High = high demand for borrowing = high rate.
  • Liquidity: Less-liquid scrips command higher rates.
  • F&O availability: Scrips with F&O have alternative shorting; SLB rates lower.
  • Corporate events: Upcoming events affect demand.

Example

For RELIANCE (highly liquid):

  • Typical SLB rate: 5-8% per annum.

For a less-liquid mid-cap:

  • Typical SLB rate: 10-15% per annum.

For a stock with strong short interest:

  • Rate may spike to 20%+.

See also

External references

References

  1. NSE Clearing, SLB rate methodology, nseclearing.com.

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