Angel One MTF (Margin Trading Facility): Complete Guide to Leverage, Interest & Charges

Angel One’s Margin Trading Facility (MTF) — popularly known as Pay Later — is a leveraged trading solution that empowers investors to buy more stocks than they can trade with their available cash. The broker offers up to 4× leverage under the MTF facility and levies daily interest on the funded amount until the position is closed.

Check comprehensive details on Angel One MTF, including features, how MTF works, interest charged, pledge/unpledge charges, and more.

Angel One MTF

Angel One MTF (Trade Now, Pay Later) facility by Angel One lets you buy stocks by paying only a part of the full value upfront and borrowing the rest from Angel One to complete the purchase. The MTF allows you to purchase upto 4x more shares than your capital.

MTF Example

• You have ₹10,000 in your trading account
• Angel One can fund up to ₹30,000
• So you can buy stocks worth ₹40,000 using MTF.

Delivery Trade (Cash N Carry - CNC) Vs MTF

Delivery trade = If you want to buy shares worth ₹40,000, 100% upfront money is required (you need ₹40,000). Suppose you expect 10% upside, so you’ll get a total profit of ₹4,000.

MTF Trade = You pay just ₹10,000 + ₹30,000 borrowed from Angel One (interest charged on the borrowed capital). At the same 10% upside, let’s assume you pay interest of ₹150 on the funded amount, so your profit in hand will be ₹3,850.

Note: MTF increases potential profits but also increases your losses if the stock price declines.

Angel One MTF Key Features

• Angel One MTF Pay Later gives you up to 4x the buying power of your own cash.
• Competitive MTF interest rate – 0.041% per day (14.99% p.a.)
• Unlimited holding period (no restrictions) – Hold stocks as long as margins are maintained.
• No interest on MTF for the first 30 days for borrowing upto ₹1 Lakh.
• Quick MTF activation via the Angel One app.

Angel One MTF Charges Breakdown- Interest Rate & Borrowing Charges

Angel One Interest Rates

• Angel One charges 041% per day ( Approx 14.99% p.a.) interest on the borrowed amount (not on your full purchase)
• Interest on MTF is charged from the day you placed the MTF trade until you don’t square off the positions either by sell or conversion to delivery.
• Interest is charged on weekend/non-trading days also because charged daily.
• Get interest-free MTF borrowing of upto ₹1 lakh for the first 30 days

Example: Suppose you borrow ₹50,000 under MTF for 7 days

Interest = Amount funded by Angel One× interest rate (per day) ×No. of days

= ₹50,000 ×0.041%*7 days

= ₹143.5

Other charges (Brokerage, Pledge/Unpledge charges)

Angel One charges a lower of 0.1% or ₹20 per trade brokerage (minimum ₹5) on equity delivery trades and ₹20 + GST pledge/unpledge charges.

Angel One may also auto-square off MTF positions at ₹20 per order auto-square off charges in the following cases:

• If you do not pledge shares by 9 PM on the T day, positions will be squared off within T+7 days
• If you don’t maintain the required margins, In case of margin shortfall, Angel One sends a margin call, and you have to add the required funds; if not done, the positions will be squared off by the broker.

How to Activate MTF in Angel One?

To trade MTF, you need to ensure the MTF segment is enabled in your Angel One account.

Step-by-Step (App/Web):

1. Open Angel One app
2. Go to Account → My Profile
3. Scroll down to MTF / Margin Trading Facility section
4. Enable
5. Accept T&C.
6. Complete aadhaar-based OTP verification.
7. The facility will be activated within 2 working days.

Once activated, you’ll see MTF as a product option when placing orders.

How to place MTF order in Angel One?

Once MTF is activated for your account, you can place MTF buy order via Angel One app/web platform. Follow these steps:

• Log in to Angel One App/web.
• Search for the stock in the watchlist.
• Tap Buy.
• In the Order form, select “Margin/MTF/Pay Later” under the product type.
• Enter the desired quantity (no. of shares).
• Choose market price (instant order execution) or specify price (in case of limit order).
• View margin details & confirm.
• It will show your funds used, the amount funded by the broker, and the interest & pledge requirement.
• Click on Buy to confirm the order.
• Confirm pledge via OTP link on email/registered mobile no. Shares purchased under MTF are pledged automatically before 9 PM on the same day; no manual action is required.

To view your MTF positions;

• Open Angel One App.
• Click on Account.
• Click on Pay Later (MTF)
• Tap on Borrowings.
• You can see MTF details like the funded amount, MTF Invested amount, interest accrued, etc.

Angel One MTF: A Quick Comparison with Zerodha and Groww

Angel One MTF Key Takeaways

• Boosts buying power up to 4× -
• Interest ~0.041% per day (~15% p.a.)
• No set expiry — hold as long as margins are maintained
• Brokerage + pledge/un-pledge charges apply
• Activation via app profile/settings
• Applicable only to equity delivery trades
• Potential to earn higher returns but increases losses too – A small decrease in share price can result in huge losses.
• Forced square off, if you do not add sufficient margins in case of a margin shortfall.