Traders looking to amplify their positions often turn to the Margin Trading Facility. It’s a powerful tool, but its cost can quickly eat into profits if not managed well. That’s why understanding MTF interest rates is essential. Brokers across India are offering highly competitive rates, but how do they stack up? Here’s a look at who offers the lowest MTF interest rates and what features they bring along.
What is MTF?
MTF, or Margin Trading Facility, allows investors to buy stocks by paying only a portion of the total trade value. The remaining is funded by the broker, who charges a daily or annualised interest on this borrowed amount. You get to hold your positions over time, unlike intraday trades, which must be squared off the same day. However, the cost of borrowing through MTF varies widely across brokers, making it a decisive factor for many investors.
MTF Interest Rates
MTF interest rates are typically charged annually but can also be expressed in daily terms. Here’s a snapshot of how leading brokers in India currently compare:
●HDFC Sky: 12% per annum (1% per month).
●Dhan: Tiered structure, starting at 12.49% and rising with volume.
●Groww: Around 14.95% per annum.
●Paytm Money: Around 14.99% per annum.
●Zerodha : Approx 15.72% per annum (0.04% per day)
Top Brokers with Lowest MTF Interest Rates
As margin trading gains traction among retail investors, interest rates and platform features have become key decision points. Here’s a curated list of brokers offering competitive Margin Trading Facility (MTF) rates in India, starting with the lowest.
1. HDFC Sky
HDFC Sky is a top-tier platform for investors using MTF, offering one of the lowest interest rates in India at 12% per annum. Backed by HDFC Securities, it provides a seamless trading experience across equities, ETFs, IPOs, mutual funds, and derivatives. Its smart features, beginner-friendly setup, and transparent pricing make it a reliable choice for both new and experienced traders. Users also benefit from access to an extensive MTF Stock List, enabling wider investment opportunities.
Key features of HDFC Sky’s MTF facility:
●MTF interest rate starting at 12% per annum – among the most competitive in India
●Zero interest for the first 30 days – a great value addition for new users
●Up to 4× leverage – boost your buying power across 800+ eligible stocks
●T+275 days holding period – longer flexibility for position management
●Integrated MTF Calculator – helps estimate margin cost and returns accurately
●Dedicated Margin Trading App – real-time tracking and seamless execution
●Flexible collateral options – pledge securities for margin funding
●No hidden charges – complete transparency in pricing
To get started, download the HDFC Sky app or visit their website to Open Demat accountand activate the MTF facility with ease.
2. Dhan – Tiered Flexibility
Dhan offers a structured MTF facility with interest rates starting at 12.49% per annum for funding up to ₹5 lakh. Its tier-based pricing gives users the flexibility to scale their borrowing as per investment size. While not the lowest-cost option, Dhan provides a broad stock universe, responsive service, and analytical tools suited for informed decision-making. It’s a practical choice for users who prefer a balance of functionality and control.
Key features of Dhan’s MTF offering:
●MTF interest rate starts at 12.49% per annum (up to ₹5 lakh)
●Access to 1,500+ stocks under the margin trading facility
●Tiered pricing model for varying margin requirements
●Real-time tools and alerts for better trade management
●Responsive customer support for quick issue resolution
3. Groww
Groww offers Margin Trading Facility at a rate of 14.95% per annum. While the rate is on the higher side, the app’s simplicity makes it suitable for beginners or casual investors already using Groww for mutual funds or stocks. The platform provides basic tools, a clean interface, and integrated access to margin trades—ideal for those prioritising ease and familiarity over low-cost execution.
Key features of Groww’s MTF offering:
●MTF interest rate of 14.95% per annum
●Fully app-based platform with user-friendly design
●Ideal for first-time MTF users already investing on Groww
●Streamlined onboarding with paperless activation
●Basic margin tracking tools for quick calculations
●Integrated portfolio view across mutual funds and stocks
4. Paytm Money
Paytm Money provides Margin Trading Facility with a tiered interest structure, starting at 14.99% per annum for most individual investors with funding below ₹25 lakh. A reduced rate of 9.75% p.a. applies only to books exceeding that threshold. Integrated within its existing stock trading features, the MTF option is easy to access. With a user-friendly app and unified dashboard, Paytm Money suits investors who prefer managing stocks, mutual funds, and MTF in one convenient platform.
Key features of Paytm Money’s MTF offering:
●14.99% interest rate for most individual MTF users
●Reduced 9.75% p.a. rate applicable only for books above ₹25 lakh
●Mobile-first interface that’s simple and easy to navigate
●Unified dashboard for stocks, SIPs, and mutual funds
●Basic tools for tracking margin usage and funding limits
●Integration with the Paytm ecosystem for convenient account access
5. Zerodha
Zerodha, India’s largest discount broker, is widely respected for its transparent pricing and efficient trading tools. Its Margin Trading Facility (MTF) carries a competitive interest rate of approximately 15.72% per annum (0.04% per day). With the powerful Kite app, Zerodha delivers a seamless experience for active traders seeking clarity, control, and cost-effective execution. It’s an excellent choice for seasoned investors who value detailed insights and platform stability.
Key features of Zerodha’s MTF offering:
●MTF interest rate of 15.72% per annum (0.04% per day)
●Access via the Zerodha Kite app with real-time margin updates
●Full transparency with no hidden charges
●Broad selection of MTF-eligible stocks listed by exchanges
●Support for multiple investment products, including stocks, ETFs, IPOs, and mutual funds
●Efficient fund transfer and a paperless onboarding process
Conclusion
Among all margin brokers in India, HDFC Sky currently offers the most compelling combination of low-cost borrowing, comprehensive features, and platform efficiency. Whether you’re a new investor or a seasoned trader, these features, along with their dedicated Margin Trading App, can significantly influence your net returns over time.
