Starting June 2, 2025, interest on Margin Trading Facility (MTF) will follow a slab-wise structure based on your daily borrowed amount. This change improves transparency and aligns costs more closely with your actual usage.

What’s changing

• The flat interest rate of 18% per annum will be discontinued.
• Interest will be charged based on the slab your daily borrowed amount falls into.
• Interest will continue to be calculated daily and adjusted weekly in your MTF ledger.

This structure ensures lower borrowing costs for smaller usage and proportionate rates for larger trades.

New interest slabs

Only one rate applies per day based on your total borrowed amount.

Example

Day 1: If you borrow ₹1,000, it falls under the 0% slab, so no interest is charged.
Day 2: If your borrowed amount is increased to ₹1,100. This places him in the 16.49% slab, so the entire ₹1,100 is charged at 16.49% per annum for that day.

This ensures interest remains aligned with your daily usage level.

For existing MTF users

• The new structure will apply automatically from June 2, 2025.
• Any ongoing MTF positions will be recalculated under the new slabs from that date.
• No action is required on your part.

Other MTF-related charges, such as brokerage, pledge/unpledge fees, and demat debit charges, remain unchanged.

For pricing details, check out the MTF calculator.