Lowest MTF interest rate broker in India: twelve tariffs compared

Lowest MTF interest rate broker in India: compare the funded amount

The lowest MTF interest rate broker in India cannot be identified from a single advertised percentage. A rate may apply only above a funding threshold, to a paid plan, or during an introductory offer. The amount borrowed, the days charged and the fees for establishing and releasing the pledge all change the cost.

This comparison covers twelve brokers using their own pages opened on 14 October 2026. It models ₹1 lakh of broker funding, which is different from a ₹1 lakh purchase value. If a purchase combines your cash with borrowed money, interest is applied to the funded component under the cited tariff. A funding limit or a leverage multiple does not tell you the interest bill.

For the product concept, read what MTF means. This is a cost comparison with stated assumptions, not a recommendation to borrow or a ranking of brokers.

MTF headline rates and the conditions that matter at ₹1 lakh

Twelve broker comparisons; primary sources opened 14 October 2026. Rates are the broker's published quotes, not our endorsement. Conflicting figures remain visible.

Broker	Published headline or basis	₹1 lakh funded basis	Plan and pledge conditions
5paisa	0.038% daily / 13.99% p.a. above ₹1 crore	Product: 0.041% daily; Optimum tariff: 0.045%	₹20 + applicable GST per MTF pledge/unpledge; promotional terms differ [five-mtf, five-tariff, five-offer]
Angel One	14.99% p.a.	14.99% p.a.; chargeable fortnightly	MTF pledge/unpledge: ₹12 CDSL + ₹8 Angel One, each + GST, per ISIN [angel]
Dhan	Starts at 12.49% p.a.	12.49% p.a.; 0.0342% daily printed	₹15 + GST per ISIN/request for pledge and unpledge [dhan-interest, dhan-fees]
FYERS	12.49% p.a. at higher funding or Prime	Standard: 16.49% p.a.; Prime: 12.49%	₹12 + GST per pledge and per unpledge; Prime ₹499/month or ₹4,990/year excluding GST [fyers, fyers-prime]
Groww	14.95% p.a.	14.95% p.a.; blog also prints 0.041% daily	Pricing: ₹20 per ISIN for pledge/unpledge order; blog: ₹20 per order [groww, groww-daily]; event-fee GST basis unverified
HDFC SKY	1% per month / 12% p.a.	12% p.a.; daily divisor not established	Calculator labels ₹20 each side for pledge/unpledge; day-count wording conflicts within its FAQ [sky, sky-calc]; event-fee GST basis unverified
ICICI Direct	Prime 9999: 9.69% p.a. on pricing page	Prime 4999 pricing: 10.99%; FAQ table: 9.85%	Prime ₹4,999/₹9,999 one-time named plans; FAQ headline 9.69% from 21 August 2026 conflicts with table [icici, icici-faq]
Kotak Neo	Trade Free Pro: 9.69% p.a.	9.69% p.a.; page also prints 0.0265% daily	₹249 + GST monthly, auto-renewing; MTF pledge/unpledge ₹20 + GST per ISIN [kotak, kotak-pledge, kotak-basis]
m.Stock	8.99% p.a. above ₹5 crore in article table	Table: 14.99% up to ₹25 lakh; same article FAQ: 9.99% up to ₹5 crore	₹32 per PSN per day + GST for MTF creation/closure; no subscription stated; applicable interest unresolved [mstock, mstock-fees]
Paytm Money	7.99% p.a. up to ₹1 lakh	7.99% p.a.; larger-funding pages conflict	Pricing: MTF pledge ₹20/transaction excluding GST; article: pledge/unpledge ₹20/transaction, release tax basis unspecified [paytm, paytm-old, paytm-fees]
Upstox	Basic ₹20/day per ₹40,000 block; Plus ₹50,000 blocks up to ₹1 lakh	Basic: 3 blocks = ₹60/day; Plus: 2 blocks = ₹40/day	Pledge/unpledge ₹20 plus taxes; Plus initially free under its PDF, subject to future notice [upstox, upstox-plus]
Zerodha	0.04% daily	₹40/day on ₹1 lakh funded	₹15 + GST per ISIN/purchase day at creation and release, as detailed in help [zerodha]

Sources: [1], [2], [3], [4], [5], [6], [7], [8], [9], [10], [11], [12], [13], [14], [15], [16], [17], [18], [19], [20], [21], [22], [23], [24], [25]

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A daily quote translated into 30, 90 and 365 chargeable days

Zerodha's published 0.04% daily rate and ₹15 creation plus ₹15 release are applied to an assumed constant ₹1,00,000 funded amount, one ISIN bought on one day and fully released once. These are financing-and-pledge subtotals before applicable GST; brokerage, DP, account fees and statutory trade charges are excluded.

Interest each charged day

₹1,00,000 × 0.0004 = ₹40.00

30 days plus one pledge pair

₹40 × 30 + ₹15 + ₹15 = ₹1,230.00

90 days plus one pledge pair

₹40 × 90 + ₹15 + ₹15 = ₹3,630.00

365 days plus one pledge pair

₹40 × 365 + ₹15 + ₹15 = ₹14,630.00

30-day simple annualised partial cost

₹1,230 ÷ ₹1,00,000 × 365 ÷ 30 × 100 = 14.965%

365-day cost divided by funding

₹14,630 ÷ ₹1,00,000 × 100 = 14.63%

Source: [25]

How the ₹1 lakh funding model handles daily and annual quotes

All cases assume an unchanged funded balance for exactly 30 or 90 chargeable days, timely payment of interest from separate cash, one purchase day and one complete pledge release. No unpaid interest is added to the borrowing. This is simple-interest arithmetic; it does not claim that default interest or capitalisation never applies. A real ledger can differ when the funded balance, collateral or repayment timing changes.

Where a daily rupee or percentage charge is expressly stated, the model uses it. Dhan's printed 0.0342% daily quote gives ₹34.20 per day. Upstox's blocks are rounded upwards, as its partial-block example establishes. Annual-only estimates use a stated 365-day divisor. Kotak's own interest help and Groww's article show that divisor; for Angel One, FYERS, HDFC SKY and Paytm Money it is our standardised modelling assumption, rather than a verified ledger specification. Paytm Money's own ₹60,000 example is consistent with 365 days, but it does not expressly specify the divisor.

Kotak's model uses its documented annual formula instead of the rounded daily label. Groww's annual formula similarly gives a small difference from multiplying its printed 0.041% daily shorthand. HDFC SKY also advertises 1% per month, so its 365-day estimate must not be read as confirmation that a 30-day month costs exactly that amount. The table is a transparent financing estimate, not an actual account statement.

Paid monthly plans are allocated fully to this one borrowing episode: one monthly bill in the 30-day case and three in the 90-day case. Those billing-period counts are assumptions; calendar dates can cause additional renewals. Existing subscribers may allocate a fee differently. No extra plan fee is allocated to the other illustrated standard cases, which is a model choice rather than proof that every possible account charge is zero.

Event-fee amounts also need a tax basis. Groww and HDFC SKY quote ₹20 for the relevant creation and release events without establishing whether those amounts include GST. Paytm Money's pricing page establishes the pledge fee excluding GST, while its article quotes ₹20 for both pledge and unpledge without stating the release fee's tax basis. Their interest estimates remain visible, but combined pre-GST subtotals and annualised costs are withheld.

₹1 lakh: interest, stated event fees and allocated plans

Model checked 14 October 2026. Columns show 30 / 90 chargeable days where paired. Money and annualised rates are rounded half-up to two decimals after calculation. Published subtotals are before applicable GST and exclude brokerage, DP, account fees, statutory trade charges and forced-liquidation costs. Unknown event-fee tax bases result in withheld subtotals.

Broker / plan	30-day interest	90-day interest	Event + plan allocation	Partial subtotal: 30 / 90	Simple annualised partial rate: 30 / 90
5paisa	Withheld: rate conflict	Withheld	₹20 per pledge/unpledge + GST; offer separate	Withheld	Withheld
Angel One	₹1,232.05	₹3,696.16	₹40.00 event fees; plan allocation ₹0.00 / ₹0.00	₹1,272.05 / ₹3,736.16	15.48% / 15.15%
Dhan	₹1,026.00	₹3,078.00	₹30.00 event fees; plan allocation ₹0.00 / ₹0.00	₹1,056.00 / ₹3,108.00	12.85% / 12.60%
FYERS Standard	₹1,355.34	₹4,066.03	₹24.00 event fees; plan allocation ₹0.00 / ₹0.00	₹1,379.34 / ₹4,090.03	16.78% / 16.59%
FYERS Prime monthly	₹1,026.58	₹3,079.73	₹24.00 event fees; plan allocation ₹499.00 / ₹1,497.00	₹1,549.58 / ₹4,600.73	18.85% / 18.66%
Groww	₹1,228.77	₹3,686.30	Quoted event pair ₹40.00; tax basis unverified	Withheld: event-fee tax basis unverified	Withheld
HDFC SKY	₹986.30	₹2,958.90	Quoted event pair ₹40.00; tax basis unverified	Withheld: event-fee tax basis unverified	Withheld
ICICI Direct	Withheld: plan-rate conflict	Withheld	One-time Prime fee must be allocated; pledge not priced here	Withheld	Withheld
Kotak Neo Pro	₹796.44	₹2,389.32	₹40.00 event fees; plan allocation ₹249.00 / ₹747.00	₹1,085.44 / ₹3,176.32	13.21% / 12.88%
m.Stock	Withheld: same-page rate conflict	Withheld	Creation/closure ₹32 per PSN/day + GST	Withheld	Withheld
Paytm Money	₹656.71	₹1,970.14	Pledge ₹20 excl. GST; release quoted ₹20, tax basis unverified	Withheld: event-fee tax basis unverified	Withheld
Upstox Basic	₹1,800.00	₹5,400.00	₹40.00 event fees; plan allocation ₹0.00 / ₹0.00	₹1,840.00 / ₹5,440.00	22.39% / 22.06%
Upstox Plus	₹1,200.00	₹3,600.00	₹40.00 event fees; plan allocation ₹0.00 / ₹0.00	₹1,240.00 / ₹3,640.00	15.09% / 14.76%
Zerodha	₹1,200.00	₹3,600.00	₹30.00 event fees; plan allocation ₹0.00 / ₹0.00	₹1,230.00 / ₹3,630.00	14.97% / 14.72%

Formula: annualised partial rate = subtotal ÷ funded amount × 365 ÷ charged days × 100. This is not a compounded effective interest rate or a regulatory APR. Missing or conflicting inputs produce withheld totals. Event pairs use one creation and one release; Groww's per-ISIN/order descriptions are retained in the first table. Groww, HDFC SKY and Paytm Money retain sourced interest estimates and quoted event fees, but no combined pre-GST subtotal or annualised cost is published while an event-fee tax basis is unverified.

Sources: [1], [2], [3], [4], [5], [6], [7], [8], [9], [10], [11], [12], [13], [14], [15], [16], [17], [18], [19], [20], [21], [22], [23], [24], [25]

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A paid lower rate can cost more in the stated example

FYERS Standard at ₹1 lakh uses the 16.49% annual slab. Prime advertises a flat 12.49%, with ₹499 monthly or ₹4,990 yearly excluding GST. In the assumed 30-day monthly case, the lower interest estimate is ₹1,026.58, but adding the full ₹499 plan fee and ₹24 pledge pair produces ₹1,549.58 before applicable GST. Standard's corresponding financing slice is ₹1,379.34.

That comparison does not value any other Prime benefit. It answers only whether the entire monthly fee is recovered by interest savings on this particular assumed balance and period. If you already subscribe for other features, or fund a different amount, the allocation changes. The annual subscription would be a separate cash outlay; this table does not silently divide that payment by twelve.

Kotak Trade Free Pro follows the same principle. Its ₹249 plus GST monthly subscription belongs beside its 9.69% rate. The calculation uses the published annual-divided-by-365 formula, not the conflicting numerical values in the help page's worked stock example. Do not transfer a Pro quote to a different Kotak plan.

Why block pricing changes the percentage at ₹1 lakh

Upstox Basic daily funding charge

₹60

Three started ₹40,000 blocks at ₹20 each, derived from the broker's partial-block example.

Source: [23]

Upstox Plus daily funding charge

₹40

Two ₹50,000 blocks at ₹20 each within the first ₹1 lakh; current PDF says activation is initially free, subject to future notice.

Source: [24]

Which official MTF figures could not be reconciled?

ICICI Direct's pricing page associates Prime 4999 with 10.99% and Prime 9999 with 9.69%, while its Prime FAQ table prints 9.85% for both. The FAQ's own headline also says 9.69% from 21 August 2026. We therefore withhold a modelled Prime total, and do not attach the older 9.65% figure from comparison articles to a ₹4,999 fee. Confirm the current named plan, tax-inclusive payment and activation terms with the broker.

5paisa's product page gives 0.041% daily for funding up to ₹1 crore, but the Optimum tariff says 0.045% for MTF/delayed payments. Its promotional terms describe a separate zero-interest benefit and 0.026% on excess capital/margin. These are separate publications with unresolved applicability; no zero-interest invoice or combined promotional total is invented.

m.Stock's charge article contains a ₹25 lakh slab table showing 14.99% below that boundary, while its introduction and FAQ describe 9.99% up to ₹5 crore. The same official page conflicts with itself. Its 8.99% headline is not used for ₹1 lakh. Both pledge creation and closure wording are shown without turning an ambiguous PSN charge into a complete bill.

Paytm Money's two cited articles agree on 7.99% up to ₹1 lakh but disagree at larger book sizes. The ₹1 lakh interest estimate is shown. The funding article expressly quotes ₹20 per pledge/unpledge transaction, so the release fee amount is verified. A combined pre-GST financing subtotal is withheld because that article does not establish the release fee's GST basis. Unknown tax treatment is not assumed to be zero.

Read the ledger before treating an estimate as your borrowing cost

• Confirm the principal

  Record the actual broker-funded balance and whether sale-day ledger adjustments alter it. Dhan specifically explains that a sale-day transfer can affect the amount charged.

• Count chargeable days

  Ask when funding starts and when realised sale proceeds stop the charge. The model uses charged days, avoiding a guessed buy-to-sell calendar.

• Keep plan invoices beside the ledger

  Record each monthly renewal or the one-time subscription separately, including its stated tax treatment.

• Match pledge events

  Count ISINs, purchase days, requests and PSNs under the broker's wording. A second purchase day can create another event.

• Add the excluded trade costs

  Interest and pledge fees do not replace brokerage, demat debit fees or statutory charges. Reconcile those from the contract note and DP statement.

“Stock brokers shall ensure maintenance of the aforesaid margin at all times”

The lowest quoted rate does not remove MTF risk

The 2017 SEBI framework requires maintenance margin and necessary calls when it falls short. NSE's current FAQ says a member may liquidate securities for an unmet margin call under mutually agreed terms, with the stated period not exceeding five working days. This is not a promise of a five-day grace period. Read the broker's current rights, obligations and liquidation conditions.

A price fall reduces the value of funded holdings while financing cost continues to accrue. Collateral value, eligibility or margin requirements can also change. None of the illustrated costs sets a maximum loss or proves that a position is suitable. This is a plain-English explanation of charges and cited requirements, not legal or investment advice.

SEBI's document issued on 18 June 2026 is a consultation paper asking for comments on proposals. We do not treat it as an operative final circular or use a proposed rule to price an account. MTF funding also differs from the cash-intraday arithmetic discussed in the leverage and margin rules page.

Two examples of why ₹5 lakh and ₹10 lakh cannot reuse every headline

Slab boundaries from official help opened 14 October 2026. These are published rate scopes, not additional live quotes or compounded calculations.

Broker / standard plan	Exactly ₹1 lakh funded	Exactly ₹5 lakh funded	Exactly ₹10 lakh funded
Dhan	12.49% p.a.; printed daily 0.0342%	12.49% p.a.; printed daily 0.0342%	13.49% p.a.; printed daily 0.0369%
FYERS Standard	16.49% p.a.	15.49% p.a.	15.49% p.a.

FYERS explicitly applies one slab rate to the whole borrowed amount for each day, not a graduated portion-by-portion calculation. Check all your funded positions together.

Sources: [5], [7]

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Keep financing costs separate when reviewing a trade

A useful record keeps gross price movement, interest, plan allocation, pledge events and execution costs as separate amounts. That makes it possible to see why a headline percentage and a ledger total differ without attributing every debit to interest. Use the verified non-brokerage fee comparison for ordinary account and demat events; do not substitute those ordinary pledge rates for the MTF-specific rates above.

The charges changelog is the shared reference for statutory trade-charge rates. This page deliberately leaves those rates in that reference rather than building a competing tax table. Refresh the financing comparison quarterly and whenever a broker changes its tariff. For an actual borrowing decision, obtain the applicable account terms and a current cost breakdown; this documented example cannot resolve your eligibility, margin or liquidation risk.

Sources

Every figure on this page comes from one of these. Each was checked on the date shown.

1. [1]5paisa MTF product and standard slabs · checked 14 Oct 2026
2. [2]5paisa Optimum tariff · checked 14 Oct 2026
3. [3]5paisa MTF promotional terms · checked 14 Oct 2026
4. [4]Angel One pricing: MTF rate and pledge split · checked 14 Oct 2026
5. [5]Dhan MTF interest calculation and slabs · checked 14 Oct 2026
6. [6]Dhan MTF charge help · checked 14 Oct 2026
7. [7]FYERS MTF current charges, updated 15 June 2026 · checked 14 Oct 2026
8. [8]FYERS Prime subscription and MTF rate · checked 14 Oct 2026
9. [9]Groww current pricing · checked 14 Oct 2026
10. [10]Groww MTF daily calculation, 7 May 2026 · checked 14 Oct 2026
11. [11]HDFC SKY margin pricing · checked 14 Oct 2026
12. [12]HDFC SKY MTF calculator charge labels · checked 14 Oct 2026
13. [13]ICICI Direct pricing and named Prime plans · checked 14 Oct 2026
14. [14]ICICI Direct Prime FAQ with conflicting table · checked 14 Oct 2026
15. [15]Kotak Neo Trade Free Pro pricing · checked 14 Oct 2026
16. [16]Kotak Neo MTF pledge help · checked 14 Oct 2026
17. [17]Kotak Neo MTF interest formula · checked 14 Oct 2026
18. [18]m.Stock MTF charge article, 22 May 2026 · checked 14 Oct 2026
19. [19]m.Stock pricing, MTF pledge-specific line · checked 14 Oct 2026
20. [20]Paytm Money MTF daily pro-rata explanation · checked 14 Oct 2026
21. [21]Paytm Money slab page dated 17 April 2025 · checked 14 Oct 2026
22. [22]Paytm Money depository pricing · checked 14 Oct 2026
23. [23]Upstox MTF Basic/Plus conditions and block pricing · checked 14 Oct 2026
24. [24]Upstox Plus terms, current official PDF · checked 14 Oct 2026
25. [25]Zerodha MTF FAQs: funded amount and event fees · checked 14 Oct 2026
26. [26]NSE current MTF FAQ: margin calls and liquidation · checked 14 Oct 2026
27. [27]SEBI CIR/MRD/DP/54/2017, 13 June 2017 · checked 14 Oct 2026
28. [28]SEBI consultation on MTF framework, 18 June 2026 · checked 14 Oct 2026