Groww MTF (Pay Later) Review 2026 – Leverage, Charges & How It Works

Groww’s Pay Later with MTF (Margin Trading Facility) lets you buy stocks by paying only a fraction, say 25% of the total trade amount, while Groww funds rest (75%) as a loan. Groww provides upto 4x leverage, and in return, you pay interest on the borrowed amount. Want to know more about Groww MTF? Check full details about how to enable MTF in Groww, applicable interest charges & borrowing cost, how to place MTF order, and more.

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Groww MTF Meaning

In Simple terms,the MTF facility allows you to take a larger amount of trade than the cash currently available in your account. Groww offers upto 4x leverage via MTF - Buy 4x more shares than your own money – for every ₹1, you can trade shares worth ₹4.

Let’s understand how Groww MTF Pay Later works:

If you want to take a trade worth ₹40,000 in a normal delivery trade, you must have ₹40,000 available. But with MTF, you only need ₹10,000 (25% upfront margin), and the remaining ₹30,000 is borrowed from Groww.

Key Points:

• You put in your own money (called margin); Groww funds the remainder (usually up to 4x).
• MTF increases your buying power upto 4x.
• MTF facility is available on selected stocks – See MTF stock list (https://groww.in/stocks/mtf/list)
• The stocks you purchase using MTF are typically auto-pledged and must meet the margin requirements.
• You can make higher returns using MTF leverage with even smaller amounts.
• No limit on holding period as long as you maintain the required margin.
• Place MTF orders 24/7; Aftermarket orders (AMO) are allowed for MTF.
• Monitor interest payments and margin shortfalls on your MTF positions directly on the Groww App.
• MTF facility is only available on equity delivery (Cash N carry orders) on NSE and BSE (Not intraday).

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Groww MTF Activation (Step-by-step process)

To activate Margin Trading Facility (MTF) on Groww, follow these simple steps:

1. Open the Groww app or website and log in to your trading account.
2. Go to the Stocks section from the main menu.
3. Tap on MTF / Margin Trading Facility banner or search for MTF in the Explore section.
4. You’ll see an option to Enable MTF — tap on it.
5. Read and accept the MTF terms and conditions (including risks, interest charges, margin rules).
6. Submit any required declarations or confirmations Groww asks for.
7. Once accepted, MTF will be activated on your account and you can start placing MTF orders on eligible stocks.
8. MTF activation is usually instant once you agree to the terms.

Note: Not all accounts may get MTF instantly — Groww may evaluate eligibility and risk limits before enabling it.

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Groww MTF Charges Breakdown – MTF Interest, Brokerage, and Pledging charges

Groww MTF Interest charges

Groww charges 0.041% daily interest (14.95% annually) on the amount funded via MTF.

How is interest calculated on MTF?

You took an MTF trade worth ₹40,000.

You paid ₹10,000, and the rest ₹30,000 was funded by Groww.

Suppose you sold the shares after 15 days.

Daily interest = 0.041%*₹30,000*15 days

= ₹184.5

Key Points:

• Interest is charged on the borrowed capital only (not the traded value).
• Interest on MTF is levied from the MTF trade day until the positions are squared off.
• Interest is calculated daily but charged on a monthly basis.
• Track and monitor your MTF interest payment under the all transactions section on the app.
• When you sell MTF positions, the borrowed amount + interest is repaid, and net amount is credited to your Groww trading account.

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Groww MTF Other charges

Groww charges a lower of 0.1% or ₹20 per order (minimum ₹5) equity delivery brokerage. Other than this, ₹20/order charges are applicable for pledging and unpledging (square-off) MTF positions.

Margin Shortfall in MTF: You purchased stocks worth ₹40,000 by paying ₹10,000 and ₹30,000 as a loan from Groww.

Now, suppose the stock price drops by 20%, so the investment value becomes ₹32,000. Therefore, Groww’s funding should be for ₹24,000 (75%), resulting in a margin shortfall of ₹6,000 (₹30,000-₹24,000).

So, you’ll need to add ₹6,000 to cover this shortfall.

This is just one case; sometimes, the stock’s haircut may also increase, say 25% to 30%, so the required margin will be ₹12,000, creating a margin shortfall of ₹2,000 (₹12,000-₹10,000)

If such a shortfall continues for 5 consecutive trading days, Groww may sell your MTF holdings partially on the 6^th day.

Further, if the stock moves out of the approved MTF list, then either you have to convert to delivery, or otherwise, the broker will automatically square off the position.

In case of margin shortfall, Groww may sell off your MTF holdings at auto-square off charges of ₹50/order.

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How to Place MTF order in Groww?

Here’s how you can place a Margin Trading Facility (MTF) order on Groww — the “Pay Later” leveraged buy option for stocks:

1. Open the Groww app or website and log in to your trading account.
2. Go to the Stocks
3. Tap on Explore and Search for the stock you want to buy from the available list of MTF‑eligible stocks.
4. Click the “Buy” button.
5. Choose the “MTF” option under the product type.
6. Enter the required quantity and order type (Market or Limit).
7. Recheck details like the required margin, etc.
8. Submit the MTF order.
9. Once executed, it will be visible under the positions
10. MTF shares are auto-pledged on the same day (no manual verification is required).

To view MTF Positions in Groww App:

• Log in to the Groww App.
• Tap on
• Click on Positions
• Here, all the MTF positions will be displayed
• Select any MTF position and tap on View Details:
  • The amount paid by you.
  • Amount funded by Groww.
  • % returns

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Groww MTF Charges comparison with Zerodha and Angel One

Groww MTF Latest Updates: New Features

• Convert MTF positions to regular delivery holdings anytime
• Shortfall visibility and clearer risk info
• Place after-market orders (AMO) for MTF
• Better position details on borrowed vs own funds

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Is Groww MTF Right for You?

Best for

• Experienced traders who understand leverage and margin risk
• Short-term swing traders, if they control risk carefully
• Users seeking capital efficiency when bullish on a stock

Caveats

• Not ideal if you’re new to margin or can’t monitor positions frequently
• Be wary of charges and always calculate actual profit after fees + interest
• Understand auto-square off rules and margin calls before using MTF.