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

Product Announcements 🔈
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

47

Can someone from dhan team please reply to this query ASAP

48

The interest rate will be applied on the entire amount of Rs. 20000 since you are using collateral margin.

49

@RahulDeshpande Please confirm whether on the entire 20000 MTF interest would be levied or on 15000 you will levy MTF interest and on 5000 you will levy Delayed Payment charges as you have just mentioned that interest will be levied but have not clarified what kind of interest would be levied as the ROI for both is different.

50

Can anyone from the dhan team please reply @PravinJ @Pranita @Sameet @shraddha @RahulDeshpande

51

@ARVIND1 I’m not from Dhan team but I’m very well versed with things around here.

DPC is applied when you use it on F&O and negative ledger… In your case, since the full collateral is being used in MTF, you will incur a interest of 12.49% p.a.

That’s it. No catch.

52

Someone from Dhan Team please reply @PravinJ

53

Hey @ARVIND1 ,

@thisisbanerjee is right. Since you are using 100% collateral, Dhan is funding your entire MTF position, which is why MTF interest of 12.49% will be charged in this case. Hope this answers your question.

Thanks,
Pranita

1 Like