MTF Charges by Zerodha

[BornArcher8]

MTF(Margin Trading Facility)

To add to what @VenuMadhav said, it is charging enough to cover the overnight risk. With LAS (Loan against security), the haircut is 50%; that is, you can borrow only 50k for pledging stock worth 1lk. The risk is lower, and hence, we charge around 11.5%. In the case of MTF, you can trade something worth Rs 1lk with as low as Rs 20k in your account. The risk for us is much higher hence we charge ~15.7% (0.04% compounded daily).