https://v2.webnotes.in/tags/lending-rate/Recent content in Lending Rate on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/slb-lending-rate/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/slb-lending-rate/<p>The <strong>SLB lending rate</strong> is the annualised percentage fee the borrower pays to the lender. Set by market demand-supply on the SLB order book.</p> <h2 id="typical-range">Typical range</h2> <table> <thead> <tr> <th>Scenario</th> <th>Rate</th> </tr> </thead> <tbody> <tr> <td>Very high demand (high short interest)</td> <td>10-20%+ per annum</td> </tr> <tr> <td>Standard</td> <td>5-10% per annum</td> </tr> <tr> <td>Low demand</td> <td>3-5% per annum</td> </tr> </tbody> </table> <h2 id="what-drives-the-rate">What drives the rate</h2> <ul> <li><strong>Short interest:</strong> High = high demand for borrowing = high rate.</li> <li><strong>Liquidity:</strong> Less-liquid scrips command higher rates.</li> <li><strong>F&amp;O availability:</strong> Scrips with F&amp;O have alternative shorting; SLB rates lower.</li> <li><strong>Corporate events:</strong> Upcoming events affect demand.</li> </ul> <h2 id="example">Example</h2> <p>For RELIANCE (highly liquid):</p>