This looks simple and straightforward.
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I was using Mirae Assets broker (Mstock) for leverage last year. They are providing 7-9% interest on margin funding to own stocks and upto 3-5x leverage. You can hold the stocks long term with leverage.
Another option is to use Futures for leverage. You have to roll over the future on monthly basis. That will incur rollover cost of 5-10%/(per year) (Depends on the scrips & volatility). You can get up-to 5x leverage on this.
Another option is to use Options (Synthetic future) and roll over the options on monthly basis. This is has some advantage over Futures as transactions cost is low for this. Also you can hedge the postions. Here roll over cost depends on the strategy you are opting for. Leverage also depends on the strategy that you are going for. You can even get 50x leverage on this. But 3x-5x is safe for adjustments & fire fighting if direction is aganist you. Disadvantage is that many stocks are ill-liquid. Best for Indexes & high volume stocks like HDFC, TCS, ITCâŚetc.
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To be honestâŚvery honestâŚi been reading this thread from begining over and over againâŚdidnt understand a thang !
Say for exampleâŚone has hypothetical 1 cr pfâŚsay all is small capâŚmarket tumblesâŚpf loses -20% from topâŚand one wants to do this thingyâŚhow much one will get ?..how would the process pan out, how much time will it take ?..(i just get that there would be some interest) 
In case any experienced bloke may spare some time to explain ? 
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I donât know about banks but brokers like Zerodha have a list of securities that they accept as collateral.
Here is the list of securities that Zerodha accepts.
Maybe banks have a different risk management approach, and they lend even if the stocks are small cap, perhaps at a higher interest rate.
And as the value of the collateral decreases, there will be notices to add funds to the extent of the value depreciation to maintain a threshold.
A lot of things are explained in the link I have given in the previous post.
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But the Money we receive after pledging the stocks can only be used for Future and option transaction that too require 50% actual cash component
In short if I pledge stock worth Rs. 100 after haircut (usually 20-25% for most of the stocks - can be checked according to stocks in the list) I will get Rs.75. For using this Rs.75 I need to deposit another Rs. 75 cash, then I can trade in F&O for Rs. 150
I havenât availed any kind of such facilities, so my understanding could be wrong.
I think, pledging and loan are different things. So what the money is used for does not matter.
From Zerodhaâs FAQs.
Loan Against Securities (LAS) is a facility wherein stocks and mutual funds in the demat account can be pledged to avail loan against it. LAS is similar to a loan against gold or a loan against property.
I have recently watched a great interview. The fund manager was saying he has stopped accepting any more funds and he keeps getting requests for being allowed to invest. And then he said, he may start accepting when the market falls, but then people would not come forward to invest.
If the market falls really big, it may be time to test my theory of taking leverage for investing in a big way.
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Just adding in this thread - Iâm going to leverage using Personal Loan from HDFC. Taking it at ~10.85. Will go bulk in Kotak.
Thesis : All the long term thesis on low valuations, conglomerate structure performing well etc etc + Short term trigger expected in 1-2 quarters of RBI ban lifting. Expecting 15-20% CAGR over the next 2-3 years. Letâs see how it goes.
It might not be the most upside I can extract out of the market; many other opportunities might even do better. But this bluechip fits the risk reward perfectly for me in case of leveraged money.
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If it pays off please comeback and tell us your process , incase you fail still come n tell what mistakes to avoid, cause even I will be leveraging in downward market.
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Isnât it better leverage through fno? Simply take long position in the futures and keep rolling over.
The implied interest cost is about 6/7 percent and 10 roll over costs about 1 percent of the underlying so essentially you are paying about 8 percent for the position.
Not every stocks are in FnO and the leverage is high in FnO
Its true that not all stocks are in fno.
However, I donât understand how the leverage is high? Isnât it upto you how many contracts you get into? You can always hold cash in debt instruments to ensure the leverage is not very high⌠right?
Stock futures are not so liquid except few companies(HDFC, Reliance etc), mostly index futures are liquid.
The leverage for stock future is around 5x whereas MTF provides 2-3x and different calculation for other loans.
Ex:-
1 lot reliance future = 500 shares
Future price(Jan) = 1238
Total cash required 500 x 1238 = 619000
But margin required as per zerodha is 109935
Leverage = 5.6x
Basically, it depends upon oneâs risk apetite. I am not comfortable with 5x. I have not used these leveraged product yet but will use with strict stoploss for sure.
I understand your point but below is what I meant.
Lets say you have 3 Lakh and want to invest in RIL with just 2X leverage but not 6X. So what you do is you buy 1 lot of Reliance on zerodha and keep 2Lakh in a debt mutual fund/ liquidbees or equivalent.
Given that your total networth/cash is 3 Lakh but the Reliance position is almost equal to 6L (in future contract) so your leverage is just 2X.
Also, the future markets are not liquid if someone wishes to trade 100s of contract in one go but if you just want a few contracts at a go, then I see the bid ask spread is minimal so I would say the fno market for top-100 stocks is pretty liquid. no?