Interest Calculator for Loan Against Stocks and Mutual Funds
Borrowing against stocks or mutual funds comes with interest costs that vary based on the pledged amount, tenure, and applicable rate. The Interest Calculator for Loan Against Stocks and Mutual Funds puts all those variables in one place, so the actual cost of borrowing is clear before any decision is made.
Interest Calculator for Loan against Stocks and Mutual Funds
When considering a Loan Against Securities (Stocks, ETFs and Mutual Funds), understanding the interest cost is essential. Unlike traditional EMI-based loans, LAS follows an interest-only monthly installment model: you pay only the interest each month, and the principal can be repaid at the end or at any time before the end of the loan tenure. The Interest Calculator helps you estimate your monthly interest outgo and understand how it is calculated, so you can evaluate the cost of borrowing before making a decision.
What is a Loan Against Securities?
A Loan against Securities is a type of secured loan where you borrow money by pledging your stocks or mutual fund investments as collateral. Your investments remain in your portfolio and you continue earning returns on the same.
How to Use the Interest Calculator?
- You enter three inputs
- Loan amount (₹): The amount you wish to borrow.
- Annual interest rate (%): The interest rate being charged by the lender
- Repayment duration (Months): The number of months for which you need the loan.
- The calculator will provide you
- How much is your interest-only monthly installments, which you need to pay every month
- and total repayment amount, which you will end up paying to the lender
- Click “See how it’s calculated” to understand how the interest calculation is done
- Click “View repayment schedule” to view when and how much you need to repay
- Click “Download PDF Report” to save the results and refer it later
How Can the Interest Calculator Help You?
- Estimate monthly outgo: See the exact monthly interest payment and assess whether it fits within your budget.
- Plan loan duration: Adjust the repayment duration to see how total interest changes across different tenures.
- Compare borrowing costs: Use the output to compare the cost of LAS against other borrowing options, such as personal loans or credit card advances.
- Keep a record: Download a PDF report to review or share with a financial advisor.
How Does the Interest Calculator Work?
The calculator computes the monthly interest and total repayment based on your inputs. Here is an example using default values:
| Parameter | Value |
| Loan amount | ₹1,00,000 |
| Annual interest rate | 10% |
| Repayment duration | 12 months |
| Interest-only monthly instalments | ₹833 |
| Total repayment amount | ₹1,06,660 |
In this example, the monthly interest outgo is ₹833, and the total amount repaid over 12 months (principal plus interest) is ₹1,06,660.
Conclusion
The Interest Calculator is a simple tool that helps you understand the cost of borrowing against your mutual fund holdings. It provides a clear view of your monthly interest payment and total repayment amount, allowing you to evaluate LAS as a borrowing option.
The calculator provides estimates based on the inputs you provide. Actual loan terms, interest rates, and charges may vary. Always review the loan agreement carefully and consider consulting a financial advisor before making a decision.
Disclaimers
The results provided by this calculator are for illustrative purposes only and are based on the inputs provided by the user, including the loan amount, annual interest rate, and repayment duration.
The calculator assumes a constant rate of interest and does not account for any changes during the loan tenure. Therefore, the actual repayment amount may differ from the estimated value.
smallcase makes no representations or warranties regarding the accuracy of the calculator’s results and is not responsible for any errors, omissions, or inaccuracies. This calculator and the results generated are not intended as a solicitation for any loan product or as a recommendation for any particular financial decision. Users are encouraged to consult with a qualified financial advisor before making any borrowing decisions.
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Frequently Asked Questions
How is interest calculated on a loan against stocks and mutual funds?
You pay interest only on the borrowed amount each month. The Interest Calculator can be used to estimate this based on your loan amount, interest rate, and duration.
What is the interest rate for LAS at smallcase?
The interest rate for a loan against stocks and mutual funds at smallcase starts at 9.99% per annum.
Is there an EMI for a loan against stocks and mutual funds?
No. LAS follows an interest-only model. You pay monthly interest, and the principal can be repaid in part or in full at any time within the tenure.
What is the maximum loan amount I can get against my investments?
At smallcase, you can avail up to 60% of the value of your equity related investments and up to 85% of the value of your debt related investments . Loan amounts range from ₹10,000 to ₹5,00,00,000.
Are there any foreclosure charges for closing the loan early?
No, at smallcase, there are no foreclosure or prepayment charges.
Does taking a LAS affect my CIBIL score?
At smallcase, CIBIL score is not considered for LAS eligibility. Checking your credit limit does not impact your credit score. However once you apply for the loan the same it reported to the CIBIL
Can I download the interest calculation as a report?
Yes, the calculator provides a “Download PDF Report” option to save a detailed report including your monthly instalment, total repayment amount, and repayment schedule.
