Revised MTF Limit Per User: ₹1 cr

Product Announcements 🔈
1

Dear Traders and Investors,

We recently revised our interest rates on MTF and have gained a lot of love since from our users. (In order to understand our detailed product update, you can refer to this article).

To further help you make the most of margins on Dhan, we are here with yet another significant update to our Margin Trading Facility (MTF) policy.

MTF Upgrade_1600x900
MTF Upgrade_1600x9001600×900 101 KB

Here’s what’s new:

  • 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 being breached, an additional concentration. margin of 25% will be charged as per the existing process.
  • Additionally, the numbers of scrips along with limits on these scrips have further been revised. You can view the updated list here.

Effective interest rates will be now be as follows:

MTF Funded Value Interest Rate (p.a.)
Upto 5 lac 12.49%
5 lac to 10 lac 13.49%
10 lack to 25 lac 14.49%
25 lac to 50 lac 15.49%
50 lac to 1 cr 16.49%

We hope these updates help you make better use of MTF on Dhan. While leverage can amplify gains, it also increases risk, so remember to use it with caution. Always monitor your margin status closely, stay within prescribed limits, and ensure you have a solid personal risk management plan in place.

@trust_level_0 @trust_level_1

Happy Trading,
Pranita
Product @ Dhan

8 Likes
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Never used MTF on Dhan, asking the obvious question: what is the brokerage for the MTF order on Dhan? Is it the same 20 Rs per order

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Brokerage is same as normal order.

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Hi @Vishal_Singh Check how MTF works for you, not just on brokerage but with all charges on here: MTF Calculator - Calculate Interest, MTF Charges & Margin Available | Dhan

1 Like
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@PravinJ @Pranita

My humble request, this time if any “unfavorable market conditions” come like last year February 2024, I would request to maintain the MTF exposures as is, or atleast maintain a comfortable 2x, unlike last time where I was completely paralysed for many months and even Zerodha didn’t have MTF back then, so I had no option but to sit ducks.

Another request, please improve Dhan web as I mainly use Dhan web to trade because it is more of a terminal use-case for me.

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I don’t think anyone would allow that. Even banks become strict on giving loans to retail during a bad economy , or when NPA"s are high (think 2018 -2020 situation).

Similarly they will only allow you to buy the top using margin. During actual bear markets, margin provider to Dhan would rather buy the Index tiself, than collecting 15% pa by loaning it to people.

Only the rich and powerful have access to money during desperate times, and that’s how they become even richer in the next bull phase.

1 Like
8

Your post made a lot of sense. Interesting.

1 Like