Pay Later (MTF) Calculator
Expected MTF trade value (₹)
Current MTF rate (%)
Annual Daily
MTF subscription charge (₹)
MTF orders
Minimum value allowed is 1
(Annual Interest + Subscription)
^6.99% p.a. for funding above ₹5 crore; 9.99% p.a. for funding above ₹25 lakh up to ₹5 crore; 14.99% p.a. for funding up to ₹25 lakh
What is Pay Later (MTF)?
Pay Later (MTF) is an exchange approved product facilitating delivery trading with up to 80% funding from more than 700+ stocks list at interest rates as low as 6.99% p.a.(0.0192% per day). The Pay Later (MTF) facility is available to m.Stock clients at no additional subscription fees or hidden charges.
An Example to Understand Pay Later (MTF) Better
Say you want to buy 30,000 shares of Reliance Industries Ltd. currently trading at a market price of ₹2,340. Your total trade value comes to ₹7.02 crore. To take this position, you will need 25% of the trade value i.e., ₹1.75 crore as margin. To fund the balance ₹5.26 crore, you can use
m.Stock Pay Later (MTF). m.Stock provides 75% funding in Reliance Industries Ltd.
In the above case, since the funding amount is above ₹5 crore, the applicable interest rate will be 6.99% p.a. Now, suppose you hold this position for one year wherein the stock gains 20% and moves to ₹2,808. The market value of your position would now be ₹8.42 crore (₹2,808 x 30,000 shares = ₹8,42,40,000) and the profit would be ₹1.40 crore.
With MTF from m.Stock, you can take a leveraged position of up to 80% of your total trade value
- Available Margin₹1.75 crore
- m.Stock Pays₹5.26 crore
- You can buy stocks worth₹7.02 crore
- Interest rate
applicable6.99%
Interest charged during this 1 year @ 6.99% would be ₹36,80,235 (₹5,26,50,000 x 6.99% x 365/ 365) and your net profit would be ₹1,03,59,765 (₹1,40,40,000 - ₹36,80,235).
If you had not used Pay Later (MTF), you could have bought only 7,500 shares. In this case, even after a 20% gain, the market value of the position would be ₹2,10,60,000, generating a profit of ₹35,10,000. By opting for MTF, you would have made an additional profit of ₹68.49 lakhs!
*The mentioned % is only for reference. Actual value may vary based on the stock selection.
Benefits of Pay Later (MTF)
Here are some of the advantages of using the Pay Later (MTF)
Enhanced Buying Capability
You can buy up to 80% more than the available fund balance in your trading account using the Pay Later (MTF) Facility.
Low Cost
You can take the advantage of margin funding to trade in larger quantities by paying the low interest cost and brokerage charge of ₹20.
Higher Net Returns
As you pay only 20% of the total trade value while the broker funds the balance 80%, it results in higher net Return on Investment (ROI).
Fills Liquidity Gap
Traders often lose out on great short-term buying opportunities due to lack of funds. This gap can be filled with the Pay Later (MTF)Facility.
How is m.Stock Pay Later (MTF) Unique?
| Features | m.Stock | Industry | |
|---|---|---|---|
| 1 Interest rate | 0.0192% - 0.0411% per day | Up to 0.0493% per day | |
| 2 Holding Period | Unlimited | 365 days | |
| 3 Funding % | Up to 80% | 50% - 70% | |
| 4 Pledge charges | ₹32 | Up to ₹35 | |
| 5 Subscription Charges | ₹0 | Up to ₹10,000 | |
| 6Hidden Charges | No hidden charges | Other charges |