Zerodha co-founder and CEO Nithin Kamath has once again underlined the brokerage’s conservative approach to consumer lending, saying the company has no plans to enter the crowded market of personal loans or credit cards despite their high margins.

In a detailed post on X, Kamath addressed what he said was a recurring internal question: why Zerodha Capital only offers Loan Against Securities (LAS) and not unsecured credit products. Advertisement

Kamath explained that the economics do not work in Zerodha’s favour.

Zerodha’s cost of funds stands at 8.5%.

In comparison, banks borrow at 3.5%, and large NBFCs at around 7%.

This gap puts the brokerage at a structural disadvantage. “We can't compete on rates, and usually the best borrowers go where the rates are the lowest,” Kamath wrote. W

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