Top 5 Brokers in India with the Lowest MTF Margin Rates
MTF (Margin Trading Facility) allows you to buy delivery shares by paying a portion upfront, with the broker funding the remainder. You pay interest on the funded amount for each day you hold the position. If you use margin funding often, the rate matters. It affects your cost.
Here are five brokers that advertise some of the lowest MTF margin interest rates for funded delivery, plus a quick note on who each may suit. Treat every rate as starting from because plans, slabs, stock eligibility, and broker updates can change what you actually pay.
What the Lowest MTF Margin Rate Means
The margin rate here is the interest charged on the broker-funded portion of your delivery position. Some brokers quote it as a percentage per annum, while others use a daily rate that accrues with each day held.
Lowest usually means the lowest advertised slab, not a default rate for everyone. Your effective cost may vary based on your plan, funded amount, holding period, and which shares are eligible under the facility. Also, interest is not the only cost. Brokerage and operational charges (e.g., pledging or square-off fees, where applicable) can still affect the total.
An MTF calculator helps you compare brokers by modelling the same funded amount and holding days. Focus on:
● Your plan and pricing slab
● The funded amount
● Expected holding days
1. Kotak Neo
Kotak Neo lists an interest rate of 9.69% p.a. on its margin funding offering. It fits investors who want a mainstream broker option with a published sub-10% rate. Along with the headline rate, validate stock eligibility and the handling of margin shortfalls. In funded delivery, disciplined position sizing matters because leverage can amplify losses.
2. m.Stock
m.Stock promotes funding from 6.99% as a starting rate for its Pay Later facility. This can be a good pick if you want a low entry rate with flexibility across an eligible stock set. To make a fair comparison, estimate interest on your funded amount for your typical holding period and validate any additional charges that may apply to funded delivery trades.
3. 5paisa
5paisa quotes pricing starting at 0.026% per day, which annualises to roughly 9.5% p.a. Daily quoting makes planning easier for active traders because you can model the cost by days held. Use an MTF calculator for quick comparisons, and keep risk in mind. If prices fall sharply, you may need to add funds to maintain the required margin.
4. ICICI Direct
ICICI Direct advertises interest as low as 9.65% p.a. and states that the rate depends on your brokerage plan. This suits investors who prefer a full-service setup but still want a competitive starting rate for funded delivery. The key step is to verify your plan-linked rate, then estimate interest for your expected holding period before you trade.
5. Pocketful
Pocketful advertises an interest rate as low as 5.99% as its starting point. It suits frequent users of funded delivery who want to keep costs down. Before assuming you will receive the headline slab, check whether your preferred shares are eligible and how interest is charged on the funded portion as days pass.
How to Choose among These Demat Accounts
Suppose you are rate-first, Pocketful and m.Stock stands out in starting pricing. If you prefer day-wise estimation for shorter holds, 5paisa’s daily rate is simple to model. If you want established, full-service platforms, ICICI Direct and Kotak Neo offer starting rates in a similar sub-10% range, with plan and product terms you should read closely.
Whichever broker you shortlist, compare the effective cost for your scenario: interest plus the mandatory charges that apply to your exact holding period. An MTF calculator accelerates this comparison.
Difference Between the Demat Accounts
Here is the quick comparison between the demat accounts:
Broker | MTF Interest Rates | Per Day charges per Lakh |
Kotak Neo | 0.026% per day (9.75% p.a.), varies based on brokerage plans | ₹26 |
mStock | MTF interest rates are slab-based | ₹41 |
5paisa | 0.045% per day (16.425% p.a.) | ₹45 |
ICICI Direct | 0.026% to 0.049% per day (9.69% to 17.99% p.a), varies based on brokerage plans | ₹26 to ₹49 |
Pocketful | Starts at 0.0164% per day (5.99% p.a.) for amounts up to ₹1,00,000; rates vary based on the funded amount. | ₹16.4 |
Conclusion
As of January 2026, these five brokers are among the lowest publicly advertised starting rates for funded delivery in India, led by Pocketful and m.Stock on headline pricing. Because rates can change by plan, slab, and policy updates, verify the latest pricing on the broker’s page and estimate your interest cost before taking leverage. Treat margin funding as a tactical tool, not a default
