MTF - Margin Trading Facility
Low on Funds? No Problem
With Kotak Neo MTF, get up to 4X leverage on 1300+ MTF stocks
Buy More Stocks with Less Funds, only with MTF
Pay only a fraction of the trade value upfront & let Kotak Neo MTF funds the rest::
- Buy now, pay later (BNPL) facility for stocks
- Up to 4X buying power on 1,300+ MTF eligible stocks
- One flat interest rate across all amounts, no confusing slabs with Trade Free Pro
- Trade bigger without blocking full capital
MTF Calculator to Estimate Your Margin Requirement
Quantity
You pay : ₹1,00,000.00
Funding by Kotak Neo : ₹4,00,000.00
Benefits of MTF with Kotak Neo
What is Margin Trading Facility (MTF)?
Margin Trading Facility (MTF) is a SEBI-regulated facility that lets you buy more stocks than your available cash allows. You pay a part of the trade value upfront, called the initial margin, and your broker funds the rest. The shares you buy are held as collateral until you repay the funded amount. In short, MTF turns limited capital into higher buying power, while you pay interest on the money the broker lends you.
The full form of MTF is Margin Trading Facility. It is sometimes called "pay later" or buy-now-pay-later for stocks, because you take delivery of shares today and settle the funded portion later. Because it uses leverage, MTF can amplify both gains and losses, which is why SEBI permits it only on a defined list of liquid stocks and ETFs known as Group I securities.
With Kotak Neo, you get up to 4X leverage on 1300+ eligible stocks, with interest rates starting at 9.69% p.a. and flexible holding periods, so you can hold an MTF position for as long as your strategy needs.
How MTF Works?
- Choose from 1,300+ MTF-eligible stocks, all available on Kotak Neo
- Initial margin: You pay a fraction of the total trade value, often around 25% for a 4X position, using cash or approved shares as collateral.
- Broker funding: Kotak Neo funds the remaining amount as a short-term loan so you can buy the full quantity of shares.
- Pledge as collateral: The shares you purchase are automatically pledged to secure the funded amount, as required under SEBI rules.
- Interest & repayment Interest is charged daily on the funded amount until you sell the shares or convert the position to delivery by paying the balance.
Let us understand this through an example.
Quantity | 100 | 100 | 100 |
Trade Value | ₹10,000 | ₹10,000 | ₹10,000 |
You paid | ₹2,000 | ₹2,000 | ₹2,000 |
Funded amount | ₹8,000 | ₹8,000 | ₹8,000 |
Holding period | 30 days | 30 days | 30 days |
Interest charges (For 30 days) | ₹98.40 @ 14.99% p.a. | ₹98.40 @ 14.99% p.a. | ₹63.68 @ 9.69% p.a. |
MTF Brokerage charges | ₹0 | ₹0 | ₹0 |
Total MTF Brokerage | ₹0 | ₹0 | ₹0 |
Profit with MTF | ₹2,500 | ₹2,500 | ₹2,500 |
Profit without MTF | ₹500 | ₹500 | ₹500 |
Net Profit after brokerage and interest | ₹2,401.60 | ₹2,401.60 | ₹2,436.32 |
Net Profit % with MTF | 120.08% | 120.08% | 121.82% |
Net Profit % without MTF | 25% | 25% | 25% |
Get upto 4x leverage with our Margin Trading Facility (MTF) at a low interest rate.
₹10 per order Brokerage on all carry forward F&O Trades.
₹0 per order Brokerage on Stock Delivery trades for first 30 days.
₹0 per order Brokerage on Equity Intraday Trades for first 30 days.
How to place MTF Trade
Step 1: Access the Buy Page
Go to the buy order page of your preferred stock.
MTF Eligibility Criteria
MTF is available to any investor with an active Kotak Neo trading and demat account who has accepted the MTF terms. SEBI allows margin trading only on Group I securities, a list of liquid, lower-volatility stocks and ETFs. Hence, so not every stock qualifies. Kotak Neo offers MTF on 1300+ eligible stocks, and the approved list is updated as exchange classifications change. Before you trade, check the current MTF stock list to confirm a stock is eligible and to see its applicable margin.
MTF Interest Rates & Charges
MTF interest is charged only on the amount your broker funds, and only for the days you hold the position. Kotak Neo MTF interest rates start at 9.69% p.a., which works out to a per-day cost of roughly ₹14on every ₹50,000 funded. Because the charge accrues daily, the longer you hold an MTF position, the more interest you pay.
Beyond interest, MTF charges can include standard brokerage, pledge and unpledge charges levied by the depository, and statutory costs such as STT, exchange transaction charges, GST and stamp duty. There are no hidden charges with Kotak Neo, and you can estimate every cost before you trade using the calculator below.
MTF Vs Delivery Trading: Know the Differences
Capital Required | Pay part of trade value | Pay full amount |
Leverage | High (Up to 4x) | Limited to your funds |
Interest | Charged on funded amount | Not applicable |
Ownership | Under MTF till funded | Full ownership upfront |
Risk Level | High (due to leverage) | Low |
Profit Potential | High (amplified exposure) | Limited to invested capital |
Best For | Short to medium-term opportunities | Long-term investing |
What is MTF? | Risks, Features, Real Examples & Kotak Neo Offerings Explained by Ashish Nanda
Kotak Neo
•10m 31s
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FAQs on MTF
MTF stands for Margin Trading Facility, which is a SEBI-regulated product that lets you buy stocks by paying only part of the value while your broker funds the rest, charging interest on the funded amount.
Kotak Neo MTF interest rates start at 9.69% p.a., charged daily on the funded amount only for the days you hold the position.
Yes, MTF is 100% legal in India, and it is regulated by SEBI. It is only offered by authorised brokers under defined guidelines to ensure transparency and risk control.
The first eligibility criteria for using MTF is to have an active Kotak Neo Demat account. Apart from that, a sufficient margin amount or pledged collateral and acceptance of MTF terms are also required. You must also be on the Trade Free Pro Plan to avail the 9.69% p.a. flat interest rate across all slabs.
If your margin drops due to a fall in stock price, you will be required to add funds or collateral. Failing to do so could cause a shortfall and lead to lose your position.
With Kotak Neo’s Trade Free Pro Plan you will be charged a flat interest rate of 9.69% p.a. on the funded amount.
To activate MTF on Kotak Neo, just log in to the app, head to your profile, and open Account Details. From there, switch on Margin Trading Facility under the Products section. After accepting the T&C, your MTF will get activated.
MTF is suitable for investors based on their risk appetite and financial goals. MTF can increase your buying power, but it is always safe to assess risk and monitor positions before taking any decision.
You can use cash, stocks you already own, or even ETFs sitting in your Demat account. You'll receive a high percentage of the value, with a small haircut kept as a safety buffer to secure your collateral.
Yes, you can sell your shares bought under MTF anytime. The funded amount is adjusted, and the interest is charged only for the number of days you hold the position.
The full form of MTF is Margin Trading Facility. It is a service offered by stock brokers that allows investors to buy stocks by paying only a part of the total amount, while the broker funds the remaining balance.