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    Buy Now Pay Later MTF

    How is Interest Charged for MTF?

    Interest on MTF is calculated based on the funded amount and the number of days you hold the position.

    Interest Calculation:

    • Interest is charged on the funded amount and the Shares as Margin (SAM) amount (if any) blocked against your MTF positions.
    • The interest period starts from the exchange pay-in date (when the settlement occurs) and continues until the payout date (when funds are received).
    • Interest is calculated and debited on a daily basis, including weekends and market holidays.
     

    Example:

    You buy a stock in MTF on Monday sell the same on Thursday. The interest will be charged as follows.

    • Buy settlement of the stock (pay in) happens on Tuesday -> interest will be charged on Wednesday
    • Since stock was sold on Thursday, sell side settlement  (pay out) happens on Friday.
    • Hence the interest for the stock will be charged from Wednesday till Friday.
     

    Key Points to Remember:

    • If you buy a stock on Friday, settlement happens on Monday -> interest will be charged on Tuesday.
    • If you sell a stock on Friday, settlement happens on Monday -> interest will be charged on Saturday, Sunday and Monday as well
    • If you buy a stock on Friday and sell it on Monday -> interest will be charged for 1 single day
     

    How is Interest Deducted?

    • The applicable interest rate depends on your brokerage plan.
    • Interest is automatically deducted from your bank or trading account.
     

    To reduce the interest charges, you can either opt for Prime Plans for lower MTF interest rates, or add more margin using the "Add Margin" option to increase your upfront margin and reduce the funded amount, thereby lowering interest costs.

    Why is interest charged on my MTF position even after I have squared off/sold it? What is “Interest on MTF(SAM)” and why am I being charged this? Where is the MTF interest debited from? Where can I find my MTF margin statement?
    What is Margin Funding (MTF)? Where can I see my MTF stocks after buying them? What is Trigger Price in MTF? What Happens if the Stock Price Falls Below It? What are the different action options in the MTF page? Will I get the dividends paid by the company if I buy the stock in MTF? How can I convert my MTF (Pay Later) positions to delivery (CTD)? How to find out the interest charged for my MTF trades? What is the impact of Corporate action such as Bonus Issue or Stock Split on my MTF position? What is Trade-to-Trade segment (T2T)? What happens to my MTF position when stock goes into Trade-to-Trade segment (T2T)? What are Group 1 stocks? What happens if stock bought in MTF moves out of Group 1? What is the maximum position that can be taken in a single stock through MTF? Why are my profits from MTF are not available in current limits? Can we check shortfall amount or additional margin required for MTF position in the App? If I take multiple MTF positions in the same stock on different dates, which date will be considered for expiry? Why is my MTF position squared off/closed/sold by ICICI Direct? What are the maximum holdings/limits that can be created in MTF? How are Cash and Shares-as-Margin (SAM) limits/margins blocked and released for a MTF position? Why is my trigger price above the current price of the stock?
    What is the process of pledging? Will there be any charge on Pledging/Un-pledging the shares? Can I square off or convert to delivery my pledged MTF position? Why have I not received any pledge link/instruction for my MTF positions? Why is my Pledge not confirmed in MTF? What is CSMFA and why are my shares auto pledged in MTF in CSMFA?
    How does MTF Work? Who should use MTF? How to monitor your MTF positions for margin shortfall? What are the costs involved while transacting in Pay Later- MTF? What is the interest rate charged for taking position in MTF? How long can I hold my stock/positions in MTF? What is the margin required for creating positions in MTF? Is the margin required for buying the stock, same whether we use cash or limits from Shares as Margin? On what amount is the interest charged while transacting through Pay Later – MTF? Why are my MTF shares not shown in Demat Holdings on ICICI Direct? Why has margin been released from my MTF position? What happens if there is a margin shortfall in my MTF position with ICICI Direct? What will happen if my outstanding MTF interest is not paid? Why can’t I convert my MTF positions to Delivery (CTD)? Can I replace Shares as Margin (SAM) limits used to create MTF position with Cash Margin and Vice versa? What is the cash and securities margin (SAM) used for my MTF positions? How will the IRB Infrastructure Developers Bonus Issue impact my MTF position? Until when can I convert my MTF position to delivery (CTD) without incurring interest charges?
    What is Margin Trading Facility (MTF) Why choose MTF with ICICI Direct? What do I keep in mind while investing via MTF? What are the features associated with MTF?