Big News: MTF Interest Rates Now Start at Just 7.99% p.a.2 min read

Big News: MTF Interest Rates Now Start at Just 7.99% p.a.2 min read

At Paytm Money, we are committed to making trading smarter, simpler, and more cost-effective for you. That’s why we have reduced the interest rate on the first slab of Margin Trading Facility (MTF) from 9.75% to just 7.99% p.a.

This makes it even cheaper for you to trade with leverage and maximise your potential gains.

What’s New?

1. Low Interest Rate for Small Book Sizes

Now, if your MTF usage is up to ₹1 Lakh, you’ll pay just 7.99% p.a. – among the industry’s low rates.

Here’s the revised slab structure:

2. Smarter Brokerage Structure

Brokerage for MTF trades remains simple and transparent:

1. 0.1% of trade value for MTF orders above ₹20,000.

2. For orders below ₹20,000, brokerage will be based on existing structure (up to ₹20).

This way, you always know what you’ll pay – no hidden surprises.

How Does It Work?

Let’s take examples with stock XYZ priced at ₹1,000.

Case 1: Small Trade (₹10,000)

1. You buy 10 shares = ₹10,000 trade value.

2. With 4x leverage, you pay only ₹2,500; Paytm Money funds ₹7,500.

Charges:

1. Interest for 30 days @ 7.99% = ₹49.14

2. Brokerage = ₹20 (capped) per side → ₹40 total

If the stock rises 10% to ₹1,100:

1. Profit = ₹1,000

2. Net profit after charges = ₹910.86

3. Net profit % = 36.43% on your margin

Case 2: Medium Trade (₹10,00,000)

1. You buy 1,000 shares = ₹10,00,000 trade value.

2. With 4x leverage, you pay only ₹2,50,000; funded = ₹7,50,000.

Charges:

1. Interest for 10 days @ 14.99% = ₹3,080.1

2. Brokerage = ₹1,000 per side → ₹2,000 total

If stock rises 10%:

1. Profit = ₹1,00,000

2. Net profit = ₹94,919.9

3. Net profit % = 37.96%

Case 3: Large Trade (₹1,00,00,000)

1. You buy 10,000 shares = ₹1,00,00,000 trade value.

2. With 4x leverage, you pay only ₹25,00,000; funded = ₹75,00,000.

Charges:

1. Interest for 10 days @ 7.99% = ₹16,426.03

2. Brokerage = ₹10,000 per side → ₹20,000 total

If stock rises 10%:

1. Profit = ₹10,00,000

2. Net profit = ₹9,63,573.97

3. Net profit % = 38.54%

Why This Change Matters?

✅ Low cost of trading– 7.99% rate means you save more on every leveraged position.

✅ Beginner-friendly– easy for new traders to start with small trades to explore Margin Trading Facility.

✅ Rewards scale– high-value traders still enjoy competitive rates.

Ready to Trade Smarter?

With MTF at Paytm Money, you can buy more by paying less upfront. Whether you’re just starting or actively trading large volumes, our reduced interest rates help you make the most of every opportunity.

Open your app and try Margin Trading Facility today.

Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532, Depository Participant – IN – DP – 416 – 2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms