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Zerodha MTF (Margin Trading Funding), launched in December 2024, has gained significant attention among traders and investors. The Zerodha margin funding option allows customers to buy stocks by paying a fraction of the total cost, and Zerodha funds the remaining amount. Zerodha offers upto 5x leverage under MTF.
This article covers everything you should know about Zerodha MTF, including Zerodha MTF charges and interest rates to eligibility criteria and the activation process.
Zerodha MTF Stands for Margin Trading Facility, also called Margin Funding. The facility allows customers to buy and hold stocks for delivery by paying a small portion of the total funds required (leverage or margin), with rest money is provided as loan by Zerodha.
Means with MTF in zerodha, you can buy more stocks than the funds available in your Zerodha trading account.
Zerodha offers upto 80% margin of the trade value on MTF eligible stocks. And in return, it charges an interest rate per day, until the MTF positions remain active.
Zerodha MTF Key Features
Check out the interest charged on MTF along with pledging, unpledging, and other charges:
| MTF Leverage | Upto 5x leverage on 1300+ stocks |
| MTF Interest Rate | 0.04% per day (14.6% per annum) |
| MTF Segment | Equity Delivery (NSE) |
| MTF Pledge Charges | ₹15 per ISIN |
| MTF Unpledged Charges | ₹15 per ISIN |
| Maximum MTF Funding | ₹50 crore per account |
| Equity Delivery Brokerage | Free |
MTF is not free – Zerodha charges interest on it. Zerodha margin interest rate is 0.04% (14.6% annual). The interest is charged on the funded value on a daily basis.
Zerodha Margin Interest Example: Suppose you place shares worth ₹1,00,000 using MTF. You pay ₹25,000 and Zerodha funds the rest ₹75,000, under MTF.
MTF Interest: ₹75,000 × 0.04% = ₹30 per day. Suppose you hold MTF positions for 20 days, so the total interest cost will be ₹600.
You can track the amount of interest charged on MTF on the Console MTF statement.
Log in to console backoffice >>> Go to Funds tab >>> Statement option >>> Select MTF under the category drop-down >>> Specify date range >>> Submit. Search for interest for MTF-funded value, which is the margin interest cost charged by Zerodha.
Zerodha MTF brokerage charges are 0.3% or ₹20, whichever is lower per executed MTF order. (Applicable from 1st March 2025). Meaning, the maximum brokerage charged is ₹20. All the securities purchased via MTF must be pledged in favor of Zerodha. The broker charges ₹15 + GST pledge/unpledge charges (per stock) request.
In addition, Zerodha MTF auto-square charges are ₹50 per order. Zerodha may square off MTF positions for the following reasons:
Zerodha increased MTF limits as follows:
| Margin funding limit (overall) | ₹50 crore per account |
| Nifty 500 Securities | ₹12 crore per stock |
| Other Securities | ₹7 crore margin funding limit per stock |
To use MTF facility, clients must meet Zerodha MTF eligibility requirements which requires submitting required documents and completing MTF account opening.
If your account has DDPI enabled, you can activate margin funding facility in Zerodha instantly.
Steps to activate MTF through Zerodha Kite platform:
Placing an MTF order on Kite is the same as placing other orders. You just need to select the MTF option on the Kite order window.
Both market and limit order can be placed using MTF.
You can keep track of your MTF positions under holdings with a small M. Hold MTF positions as long as you want (no time limit).
Compare Zerodha MTF Pay Later interest rates, brokerage, pledge, & unpledge charges with other popular brokers like Groww and Angel One.
Zerodha MTF is margin funding facility that lets traders buy shares by paying only a part of the total amount. The remaining amount is funded by Zerodha as a loan.
You will be charged with 0.04% interest on the MTF funded amount, until the time you do not sell MTF shares or convert them into delivery (CNC).
It’s a margin funding facility that lets traders buy shares with borrowed funds while pledging existing holdings.
Traders meeting Zerodha MTF eligibility criteria and submitting required Zerodha MTF documents can use this facility.
Converting your MTF holdings to delivery in Zerodha is straightforward.
Note: There are no charges for converting MTF position to delivery.
Zerodha allows customers to place GTT orders at specific prices using MTF to take fresh positions and set stop-loss and target orders in one go.
Currently, the MTF GTT order feature is only available on the Kite app.
Follow these steps mentioned to sell MTF shares in Zerodha Kite:
Once shares are sold, the sale proceeds will be adjusted to pay your MTF loan amount.
Interest on MTF = Funded Amount × Daily Interest Rate × Number of Days
Follow these steps to check the amount of interest charged on MTF
