Dhan MTF Interest Rate (2026): Slabs, Charges & Example
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Dhan’s MTF interest starts at 12.49% a year (0.0342% a day) on funded amounts up to ₹5 lakh and rises to 15.49% above ₹25 lakh. The rate is flat for the whole funded amount, not just the part above each slab. Interest runs from T+1 settlement until the day before your funds are received, and you can get up to 4x leverage.
Last updated: October 2026
Margin Trading Facility (MTF) lets you buy shares by paying part of the price while Dhan funds the rest, with the shares pledged as collateral. You pay interest on the funded amount every day. Leverage magnifies losses as well as gains. Everything below comes from Dhan’s own MTF page and support articles, read in October 2026.
Dhan MTF interest rate slabs
| Funded amount | Interest a year | Interest a day |
|---|---|---|
| Up to ₹5,00,000 | 12.49% | 0.0342% |
| ₹5,00,000.01 to ₹10,00,000 | 13.49% | 0.0369% |
| ₹10,00,000.01 to ₹25,00,000 | 14.49% | 0.0397% |
| ₹25,00,000.01 to ₹5,00,00,000 | 15.49% | 0.0425% |
Dhan states that these are flat rates, not incremental: once your funded value crosses ₹5 lakh, the 13.49% rate applies to your entire funded amount rather than only the excess. One Dhan support article also lists nil interest on the first ₹500 of funding; another lists the slabs from ₹0, so check the current rate card in the app. Interest is charged daily and posted to your ledger weekly.
What 10 days of MTF interest costs
| Funded amount | Slab rate per day | Per day | 10 days |
|---|---|---|---|
| ₹30,000 (7 days, Dhan’s own example) | 0.0342% | ₹10.26 | ₹71.82 |
| ₹80,000 | 0.0342% | ₹27.36 | ₹273.60 |
| ₹6,00,000 | 0.0369% | ₹221.40 | ₹2,214.00 |
Interest only. Brokerage, pledge charges, DP charges and GST are extra. The ₹30,000 example is the one Dhan publishes: funded value ₹30,000 for 7 days at 0.0342% a day is ₹71.82.
How Dhan’s MTF interest period works
- Interest starts from the settlement day after your purchase (T+1) and runs until the day before the actual funds are received.
- Because the funds arrive on the sell settlement day, that day is not counted. A holiday between the sell date and fund realisation can add days.
- A buy-today, sell-tomorrow (BTST) trade using MTF attracts interest for one day, according to Dhan.
- Dhan says stocks bought with MTF can be held for an unlimited number of days if you maintain the required margin every day.
Other charges on Dhan MTF
| Charge | Amount |
|---|---|
| Brokerage | Lower of ₹20 or 0.03% per order |
| Pledge and unpledge | ₹15 + GST per ISIN per request. MTF positions are auto-pledged, so you take no manual step |
| DP charge | ₹12.50 + GST per ISIN, applicable when the position is sold |
| Auto square-off | Applies if Dhan’s risk team closes a position because of a margin shortfall or because coverage falls below 20%. The MTF article does not state the amount; check Dhan’s pricing page |
Leverage, eligibility and when positions are sold
- Leverage: up to 4x, on the list of stocks Dhan shows on its MTF page (1,700+ stocks as of October 2026).
- Eligibility: only securities in the exchange’s Group 1 are available, and Dhan’s risk team excludes others that do not meet liquidity requirements.
- Coverage: holdings are liquidated if holding coverage falls below 20%.
- Orders not booked as MTF: if margin is not maintained or coverage is below 20%, the order converts to delivery. With insufficient funds, shares bought can be sold by the risk team on T+5 working days.
- Limit: Dhan announced a higher MTF limit of ₹5 crore in April 2026, with rates and other terms unchanged.
How Dhan MTF interest compares with other brokers
Dhan’s lowest slab of 12.49% a year is below Zerodha (0.04% a day, about 14.6% a year), Angel One (14.99%) and 5paisa (about 18% a year), and above mStock (from 8.99%), Kotak’s Pro plan (9.69%) and HDFC Sky (12%). Dhan’s higher slabs go up to 15.49%. See the full table in the MTF charges comparison and our Dhan charges page.
Dhan MTF: FAQs
What is the Dhan MTF interest rate?
12.49% a year (0.0342% a day) on funded amounts up to ₹5 lakh, rising to 13.49%, 14.49% and 15.49% in higher slabs up to ₹5 crore.
Is Dhan’s MTF rate flat or incremental?
Flat. Dhan says that once your funding crosses a slab, the new rate applies to your entire funded amount.
When does MTF interest start and stop on Dhan?
From the day after the purchase settles (T+1) until the day before the actual funds are received. Interest is posted to the ledger weekly.
How much leverage does Dhan give on MTF?
Up to 4x on eligible stocks.
What happens if coverage falls?
Holdings are liquidated if holding coverage falls below 20%, and auto square-off charges can apply.
Is MTF risky?
Yes. Leverage magnifies losses as well as gains, and shares can be sold if margin falls short. This is information, not advice.
Is STT different between brokers?
No. STT is set by the government: 0.1% on buy and sell for delivery, 0.025% on the sell side for intraday, 0.05% on the sell side for futures and 0.15% on the sell premium for options. It is the same at every broker.
Sources
Dhan pages read in October 2026: Dhan: Margin Trading Facility; Dhan: how MTF interest is calculated; Dhan: MTF charges; Dhan pricing; Dhan: MTF limit raised to ₹5 crore.
Dhan can change rates, limits and processes at any time, so confirm on Dhan before you act. This page is for information only, not investment advice.
