We launched MTF in December 2024, and we’ve quickly gone from 0 to 5% of the MTF market. I’m not sure whether to be happy or worried. ????
As of now, the net P&L of all positions taken by traders who have used MTF is positive. pic.twitter.com/yYcZ2oEKtC
– Nithin Kamath (@ nithin0dha) September 2, 2025
MTF allows investors to buy stocks for delivery using leverage, enabling purchases without full upfront funds. Depending on the stock, users can borrow up to 80% of the trade value. Borrowed funds carry a daily interest rate of 0.04%, which translates to ₹40 per ₹1 lakh.
To use the facility, Zerodha users must enable MTF in their accounts.Accounts with PoA (Power of Attorney) or DDPI (Demat Debit and Pledge Instruction) are activated immediately, while others may take up to a day. Orders placed via MTF on Kite are marked with an “M” in the portfolio. Daily interest charges and margin requirements can be tracked through the Console MTF statement.
Costs and charges include:
- Interest: 0.04% per day on borrowed funds
- Brokerage: 0.03% or ₹20 per executed order, whichever is lower
- Pledge charges: ₹30 + GST per ISIN; unpledging is free
- Square-off charges: ₹50 + GST per squared-off order
Zerodha earlier cautioned users about the risks of leveraged trading. While equity delivery trades can be held over time, leveraged positions incur daily costs that can erode profits. Falling stock prices may require users to add margin funds or close positions.
Kamath noted that Zerodha had initially been hesitant to introduce MTF but acknowledged its growing adoption across the industry and rising contract values in derivatives.
