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    All you need to know about Buy Now Pay Later (MTF) while investing in Stocks...
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    Buy Now Pay Later MTF

    On what amount is the interest charged while transacting through Pay Later – MTF?

    Interest is charged only on the funded amount in your MTF transactions.

    When you buy stocks through Pay Later (MTF), you only pay a portion of the trade value upfront (Initial Margin), and the remaining amount is provided by ICICI Direct (Amount Payable)

     

    Funded Amount Calculation is as follows:

    • If upfront margin is provide through cash: Funded Amount = Total Trade Value – Cash Margin
    • If margin is provided through Shares as Margin (SAM), funded amount includes
      • Utilized SAM limits
      • Amount Payable

    Hence, Interest is charged on Amount Payable + SAM limits (if utilized)

     

    Assume a position worth ₹100,000 was created through MTF with an Initial Margin of ₹30,000 and Amount Payable of ₹70,000.

    Funded amount will be as follows in different scenarios.

      Position Value Margin through Cash Margin through SAM Funded Amount
    Scenario 1 ₹100000 ₹30000 - ₹70000
    Scenario 2 ₹100000 - ₹30000 ₹100000
    Scenario 3 ₹100000 ₹20000 ₹10000 ₹80000

     

    Interest will be charged on a daily basis against this Funded Amount.

    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? Why are my MTF shares not shown in Demat Holdings on ICICI Direct? Impact of Stock Split on your MTF Position in BEML Limited 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 impact of Demerger on Vedanta Ltd positions in MTF? How will the IRB Infrastructure Developers Bonus Issue impact my MTF position?
    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? 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?
    Why is interest charged on my MTF position even after I have squared off/sold it? How is Interest Charged for MTF? 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?