Dhan launches stock lending feature to let investors earn passive income

Fintech platform Dhan introduces the stock lending and borrowing mechanism (SLBM), allowing investors to earn up to 24% annually on idle shares and ETFs through exchange-backed lending

Fintech platform Dhan has launched the stock lending and borrowing mechanism (SLBM) feature, a move that will allow long-term investors to earn passive income from their idle stock and exchange-traded fund (ETF) holdings.

 

The new feature enables investors to lend their unutilised shares to borrowers for a fixed rental fee without selling their investments. The low-cost brokerage claims lenders can earn between 6 per cent and 24 per cent per annum on highly liquid stocks, with all transactions guaranteed by the clearing corporation.

 

What makes Dhan’s SLBM feature unique?

 

Pravin Jadhav, chief executive officer of Dhan, said, “This mechanism is an exchange-driven process and marks the first time a discount broker has digitally introduced such an option in India.”

 

He added that the system has been designed to be seamless, transparent, and easy to use, ensuring investors retain full ownership of their stocks and receive daily rental payouts.

 

The launch marks another step in Dhan’s efforts to provide retail investors with technology-driven tools to enhance returns and participation in India’s evolving capital markets.