MTF - Interest Rates

Why is interest being charged per day compounded? No other application is charging compounded interest rates per day. If it is compounded then how can you quote it as 15.99% per annum since it has to be 17.33% per annum if compounded?
Also this statement -

An interest of 0.0438% will be charged per day post settlement on the funded amount.

doesn’t say anything about compound interest.
FYI - I got this information of interest being compounded from your customer service.
Attaching the screenshot for the same below.

Hey @risav1994 ,

We have released MTF only for select users and are in the testing phase right now. Be assured that we will always keep things transparent at Dhan. Request you to please wait for the official announcement for more details.

Product @ Dhan

Please explain the interest in detail.

Hey @Pranita, I guess this feature is already announced here. Anyways need clarity on interest rates in detail as there is a proper advertisement on this site.


Bro… 16% is very high!! Better you go with m,Stock for MTF… only 8-9.5% interest is charged (depending on the funding amount) its the lowest in the industry… for everything else dhan is best, but for MTF m,Stock is best.

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@Akhil153045 I have switched to m.Stock for MTF. thanks!


Hi , have some doubts.

Suppose I buy SGB gold for 5L and remaining 15L is MTF from DHAN.

So can the whole 20L be pledged and the pledged amount be used for F&O ?

The 15L would be attracting 1.35 % ( around ) per month .

Is my understanding correct ?

MTF is an “open position” and not “demat holding”… I don’t think MTF position can be pledged for F&O. MTF itself is a leverage product and F&O is even more leverage!!

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Hey @pavz ,

Stocks bought using MTF cannot be re pledged as they have already been pledged for MTF. And thus cannot be used as collateral for F&O or regular trading.

Product @ Dhan