Big Update: MTF (Pay Later) Investing on Dhan now for as low as 12.49% p.a

Product Announcements 🔈
22

Thanks for your reply. Its not about 5x stocks, there are few other stocks as well where you are offering lesser leverage like for Neuland labs, it is 2X on dhan whereas in zerodha, it is 2.44x FYR.
Also, as next step, pls try to match paytm money’s interest rate of 12% p.a., for upto 5L.

25

Mr. No one is blabbering random stuff. Whatever I feel and observed with other platforms, I shared my views here for consideration and this community is for the same. I haven’t compelled them to lower the interest rates at any cost. They are the decision makers and our inputs will help them to take the decisions. Speak politely, otherwise do your job without interfering in others posts harshly unless you are from Dhan team.

27

Yes @thisisbanerjee , concentration margins will continue to apply. This is because of the business risk involved if a user has excessive concentration in a particular stock.

1 Like
28

Better mind your own business then.

29

Hi, Does interest will be deducted daily or on selling?

30

Do I need to maintain collateral funds as well in Dhan account ?
If yes , what would be charges inc ase of non maintenance

31

Dhan Team,

Can you please provide the information on Cash Balance when we place the order for Delivery. When you have pledge you are showing the total margin . On top of it the Order goes through without any confirmation if the cash balance is not enough , where in you are using the margin automatically without asking user. As a user I would like to add Cash balance in those scenarios and avoid having to use the margin to buy for delivery. I have already raised this issue with you team as the suggestion is to look at the money section to look at breakup and arrive at the available margin. This is totally not intuitive. Also when why are you trying to automatically use margin for Cash delivery, atleast show the info on the order screen on actual cash balance and the total margin balance. Your team is responding back with a note that you can unpledge if you want to see the available cash alone(not margin). Why is this practice not see this with other brokers.

32

Hey @Lokesh360 ,

Interest is charged daily and posted weekly in your ledger.

Thanks,
Pranita

33

Hey @Ankit_warbhe ,

Welcome to the Made for Trade Community. Not sure if I understood your question correctly but there is no compulsion to maintain collateral in Dhan account . If you would like to use margin, you can pledge your shares and use collateral to place trades, else you can continue using cash. Could you please elaborate on your question?

Thanks,
Pranita

34

Hey @Ravindran_V ,

Welcome for the Made for Trade Community. At present if you would like a bifurcation of your cash and collateral, you can do so by going to Money > Margin Summary. However, we understand your requirement and are working on improving the experience as mentioned in your feedback.

Thanks,
Pranita

35

Hi Pranita,

I got impacted by it recently and have been having this issue where it requires to calculate the cash balance and it is not readily shown. show a simple line item available for investing with collatral and without.

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37

Thanks dhan by the way you support us. :ok_hand:

1 Like
38

Hi @Pranita @Dhan
Can you please remove the script limit of 10L for MTF trades.

It will be very helpful to use the total limit in single or multiple stocks based on the user Scrip / Stock.

Few of my MTF positions in the other accounts are reached to the threshold value of 10L with MTF, Now I was unable to average my positions.

Then whta’s the use of taking MTF trades?

  • Simply paying interests to dhan even though my positions are in losses.
    I don’t have opportunity to average my positions after some extent.

Many other brokers like mstock,ICICI,Kotak, etc…, they don’t have any sub-limits to stocks for MTF trading.

Also can you please increase current MTF limits from 50L to 5cr which would be 10x.

Thanks

40

Hi If I am not wrong .. new rate will be appplicable for old MTF subsribers too. As MTF interest calculated based on daily basis.

41

Is there separate MTF Ledger explaining margin funded by dhan and interest charged on the same.

Regular ledger doesnt have much details

@Pranita

42

Hey @Bhoomi_s_Vlog ,

Welcome to the Made For Trade Community. New rates are applicable to all users- existing as well as new.

Thanks,
Pranita

43

Hey @jeevananth_M ,

Welcome to the Made For Trade Community! Along with the ledger, you also receive an interest statement over email which should help you understand funded by Dhan & interest charges better. To improve this further, we are working on creating a view for you in the months to come.

Thanks,
Pranita

44

As of Today, My portfolio is mainly consist of MTF position though ETFs and all of them except one are in positive, then why there’s MTM fluctuations in my main fund balance that is available for investing. M2M should go negative if there is not enough funds to cover the margin which should only happen when there is loss in any position. Still after market fluctuations throughout the day, at the end of the day Funds showing negative balance of around ₹-27K even though only one MTF position is on loss of only around -₹1.5K.

Also MTF Interest cost are already covered and even if they weren’t, there should be no impact of interest charges from M2M fluctuations of the holdings since they are settled weekly not Intraday, and neither they are related to current market price of the holdings but depends only on margin amount used + any negative margin uncovered by my funds which is not the case currently. Not by such a huge margin definitely, that the funds fluctuate from all of current holdings in portfolio.

So my primary concern is balance should not fluctuate as long as MTF position are in positive levels. Suppose after a year my holdings are +20% up and there’s is -10% dip from there, wouldn’t it be catastrophic if my balance suddenly turns -10% negative if I have holdings of large sum? How would I invest if added funds turns negative and any additional funds get adjusted to that negative balance thereafter? This doesn’t make sense that without even loss, balance also dips anytime with market just because position are in MTF.

I recently switched to Dhan from other brokers because of reduced interest rates and there weren’t any such issue with Groww, Zerodha, MStock or Fyers I was invested with earlier.

1 Like
45

Hi everyone,

An exciting update to our Pay Later via MTF offering, now users can :point_down:

  • Client-wise MTF exposure will be doubled from ₹50 L to ₹1 Cr per user.

  • Individual holding cap has been increased from ₹10 L to ₹20 L per MTF holding in line with the stock concentration limit of 20%

  • In case the above concentration margin is breached, an additional concentration. A margin of 25% will be charged as per the existing process.

  • Additionally, the number of scrips, along with limits on these scrips, have been further revised. You can view the updated list here.

2 Likes
46

Hi Team,
I have a query regarding MTF interest. Assume i have rupees 5000 margin as collateral from margin pledging equity stocks and using this i purchase stocks in MTF worth rupees 20000, here will dhan levy only MTF interest on 15000 rupees and Delayed payment charges on the 5000 rupees or will MTF interest be charges on the entire 20000 rupees?
Please reply ASAP.
@RahulDeshpande @Pranita @shraddha @PravinJ @Sameet