Archive · 7 Nov 2025
Dhan Launches Digital Stock Lending for Passive Income
Imagine you have toys you don't play with very often.
A company called Dhan has created a new way for people who own stocks (like tiny pieces of companies) to let others borrow those stocks for a short time.
When people borrow the stocks, they pay a small fee, like renting a toy.
The people who own the stocks get to keep them but also earn a little bit of extra money as a rental fee, without actually selling their stocks.
This is called the Stock Lending & Borrowing Mechanism.
Dhan is making it easy to do this all online, so people can earn money from stocks they aren't actively using.
It's a safe way to get more income from your investments, like getting paid for letting someone borrow your bike when you're not riding it.
Dhan has launched a new Stock Lending & Borrowing Mechanism (SLBM) feature.
This allows investors to earn passive rental income from their idle stock and ETF holdings.
It is the first time a discount broker in India has digitally introduced such an option.
The SLBM is an exchange-driven process, ensuring safety and transparency.
Investors can generate dual income from capital appreciation and rental yield.
- Who
- Dhan, a stock trading and investing platform, and its investors
- What
- Launched the Stock Lending & Borrowing Mechanism (SLBM) feature enabling investors to earn passive rental income on their idle stock and ETF holdings.
- When
- November 5, 2025
- Where
- Mumbai (Headquarters of Dhan)
- Why
- To empower investors to earn passive income streams and generate dual income from capital appreciation and rental yield in a regulated framework.
Potential Benefits
Considerations
Passive Income Generation
Potential Benefits
Investors can earn rental income on idle stock and ETF holdings without selling them.
Considerations
Rental yields can vary and are dependent on demand and stock liquidity, making income uncertain.
Platform Innovation
Potential Benefits
Dhan is the first discount broker to digitally introduce the SLBM feature in India, offering a seamless and transparent online experience.
Considerations
While a new offering, it requires investors to transfer their portfolio to Dhan's demat account to avail the facility.
Regulated Framework
Potential Benefits
The mechanism is exchange-driven and guaranteed by the clearing corporation, ensuring safety and transparency.
Considerations
The process and availability depend on the broader market participants and the SLBM framework itself.
- Company
- Dhan
- Feature Launched
- Stock Lending & Borrowing Mechanism (SLBM)
- Launch Date
- November 5, 2025
- Objective
- Enable passive income from idle stock/ETF holdings
- Type of Mechanism
- Exchange-driven, digitally introduced by a discount broker
- Target Audience
- Long-term investors and 'Super Traders'
- Parent Company
- Raise Financial Services