MoneyLens / Credit lines
Your credit line, explained.
Loan against securities · Kaveri Smart LAS · Kaveri Finance Ltd · ••••1183
Illustrative
Loan against securities
Pledge statement20 Oct
Available to draw
₹1,80,000
of ₹7,00,000 usable now
Used
₹5,20,000
drawing power ₹7,00,000
Market can fall
33%
before a margin call · as of 20 Oct
Rate a year
10.75%
11.30% compounded
74.3% of the limit used₹1,80,000 available
Kaveri Smart LAS from Kaveri Finance Ltd with a ₹10,00,000 limit at 10.75% a year. Interest runs only on what's used, from the day it's used; the pledged holdings must keep covering it, or the lender asks for more. ₹5,20,000 is used now.
Myra's most important observations
Used and available
Sanction p.1, Facility · Pledge statement p.1, Drawing power · Pledge statement p.1, Account- Sanctioned limit₹10,00,000
- Drawing power₹7,00,000
- Usable now (the lowest of these)₹7,00,000
- Used₹5,20,000
- Available₹1,80,000
At 10.75%, what's used costs about ₹4,658 a month in interest.
This statement's interest
Add the line's latest statement: Myra rebuilds its interest from the transactions (read, totalled, not kept).
Margin
Within the limit₹5,20,000 usedholdings support ₹7,00,000
Shares and equity funds can fall about 33% before a margin call.
Credit Line Intelligence
What Myra checked across the line's documents and RBI's rules.
| Check | What Myra found | Status | Source |
|---|---|---|---|
| Lends too much of the value | Lends 60% against shares: RBI's limit for NBFCs is 50% | Finding | Sanction p.2, Margin |
| Interest rate | 10.75% a year, charged monthly: about 11.30% a year compounded | Verified | Sanction p.1, Interest · Sanction p.1 |
| Interest only on use | Using ₹1,00,000 for 30 days costs about ₹884 in interest | Verified | Sanction p.1, Interest · Sanction p.1, Facility |
| Fees | Keeping the line costs ₹2,359 a year, used or not | Verified | Sanction p.1, Charges |
| Used | ₹5,20,000 of ₹7,00,000 used (74%) | Verified | Pledge statement p.1, Account · Sanction p.1, Facility · Pledge statement p.1, Drawing power |
| Margin | The market can fall about 33% before a margin call | Verified | Pledge statement p.1 · Pledge statement p.1, Account · Sanction p.1, Facility |
When a line goes “out of order”
RBI asset classification90 days in a row
Over the limit
What's used stays above the limit or drawing power.
90 days
No credits
Nothing comes into the account, or credits don't cover the interest.
from day 31
Reported
Flagged to credit bureaus as SMA-1, then SMA-2; a non-performing asset after 90 days.