Motilal Oswal MTF Review

Motilal Oswal MTF Charges

Type of Charge	Details
Interest	0.041% Per Day from T+1 till stock is sold (15% per Annum)
Leverage	4X on 1000+ stocks
Brokerage	Flat 0.20% per executed order.
Pledge Charges	Rs 25 per scrip for Funding Pledge/Margin Pledge
Unpledge Charges	Rs 12.5 per scrip
Exchange Supported	NSE & BSE
Order Type	Market Order, Limit Order
Maximum Funding	75% of stock value funded by broker
Maximum Holding Period	365+ Days

Motilal Oswal MTF Key Features

Leverage: Buy more shares with less money, usually with 2x to 5x margin
Interest: Pay interest only on the borrowed amount
Pledged Shares: Purchased shares are held as security with the broker
SEBI-Regulated: MTF rules and eligibility are governed by SEBI
Time Limit: Some brokers offer flexible repayment, while others have a fixed holding period

Motilal Oswal MTF Process

Key stepst to follow on how to use Motilal Oswal MTF?

Open a trading and demat account with Motilal Oswal.
Get your MTF facility auto-activated.
Select shares that are eligible for MTF.
Pay the required margin amount.
Motilal Oswal funds the remaining amount.
Track your investments and hold them as long as you wish.
Sell the shares anytime or add funds to maintain the required margin.

How to Pledge Shares for MTF?

Follow this step-by-step process for quick and secure way to pledge shares:

Log in to your broker’s app or website.
Go to the Pledge Shares option under the margin or portfolio section.
Select the eligible stocks you want to pledge.
Enter the quantity and check the margin available after haircut.
Authorise the pledge using the OTP sent by CDSL/NSDL.
The margin is usually credited within minutes.

Once pledged, you can use the unlocked margin for MTF trades without adding extra funds.

How to Check the MTF Stocks Position?

Log in to your Motilal Oswal website or MO Riise/RISE app.
Go to Portfolio or Open Positions.
Select MTF Positions / Open MTF to view stocks bought under MTF.
You can see quantity, funded amount, margin used, and status.
If there’s no separate MTF tab, MTF stocks will appear under Open Positions or Holdings after settlement.

How to Convert MTF Positions to Delivery in Motilal Oswal?

You can convert your MTF (Margin Trading Facility) position into a delivery (CNC) position through Motilal Oswal’s trading platform in a few simple steps.

Steps to Convert MTF to Delivery

Log in to your Motilal Oswal trading account using the website or mobile app.
Go to your Portfolio / Positions section.
Select the MTF stock position you want to convert.
Enter the quantity of shares to be converted.
Choose the option to convert the position from MTF to Delivery (CNC).
Confirm the request. The conversion will be processed within minutes.

Motilal Oswal MTF Other Details

Important Points to Note:

Converting an MTF position to delivery requires additional margin.
You must ensure sufficient funds are available in your trading account.
If the required margin is not maintained, the conversion request may fail.
Once converted, the shares will be treated as delivery holdings and can be carried forward.

Eligibility & Charges

To use Pay Later (MTF) with Motilal Oswal, you must:

Have a Motilal Oswal trading account
Be KYC compliant
Accept the MTF agreement online
Select shares from the approved MTF stock list

Margin Requirement While Converting

MTF positions are funded with partial margin, whereas delivery trades require full payment. When you convert MTF to delivery, you need to pay the remaining amount (Span + Exposure margin) to meet delivery margin requirements.

Motilal Oswal MTF Pros/Cons

Pros

Higher buying power using leverage
Pay interest only on the funded amount
Positions can be held beyond intraday
Better capital and liquidity management
365+ days flexible holding period
Available on 1000+ SEBI-approved stocks
Auto-pledge facility — no manual process needed

Cons

Interest cost increases with holding period
Margin calls if stock prices fall
Only SEBI-approved stocks are eligible
Requires regular monitoring of positions
Risk of forced square-off if margin is not maintained
Brokerage at flat 0.20% per order may add up for active traders
MTF not available for F&O, currency, or commodity segments

Motilal Oswal MTF Conclusion

Motilal Oswal Margin Trading Facility (MTF) is a useful option for investors seeking higher exposure with limited capital. It offers leverage, flexibility, and transparent charges, making it suitable for informed investors. However, interest costs and margin risks require disciplined monitoring and prudent position management for effective long-term use.

Motilal Oswal Special Offer

FREE Account Opening (for a limited time only)

₹0 Account Opening Charges - Free
₹0 Brokerage up to ₹1000 for the First 30 Days
₹0 AMC & charges for the 1st Year
Free F&O brokerage for 1st Month
Futures: 0.02% brokerage| ₹20/lot on Equity and currency F&O
Dedicated Personal advisory and research.

Open FREE Demat Account in 5 Minutes

Frequently Asked Questions

In regular delivery (CNC), you pay 100% of the trade value upfront with no interest. Under Motilal Oswal MTF, you pay only a part margin, while the broker and interest fund the remaining amount is charged on the funded portion.

Discuss this question

Motilal Oswal offers up to 4X leverage under MTF. The exact leverage depends on the stock’s eligibility and SEBI-prescribed margin requirements.

Discuss this question

Motilal Oswal charges interest at 0.041% per day (approximately 15% per annum) on the funded amount, calculated from T+1 day until the position is closed or converted.

Discuss this question

MTF positions can be held for a longer duration (365+ days), subject to margin maintenance and broker policies.

Discuss this question

No, only SEBI-approved and Motilal Oswal–approved stocks are eligible for trading under the Margin Trading Facility.

Discuss this question

If you fail to maintain the minimum required margin in your MTF account, Motilal Oswal will automatically square off the shares purchased under MTF after T+4 days.

Discuss this question

When you purchase shares under MTF, those shares are auto-pledged with the depository (CDSL/NSDL) as per SEBI guidelines. The pledge charges are ₹25 per scrip, and unpledge charges are ₹12.5 per scrip.

Discuss this question

Interest in Motilal Oswal MTF is calculated daily at 0.041% per day (15% per annum) on the borrowed amount, starting from T+1 day. It continues to accrue until the position is closed or the borrowed amount is repaid.

Discuss this question

Motilal Oswal MTF (Pay Later) is available on the MO Riise app (formerly MO Investor App) available on both Android and iOS. You can select any eligible stock, choose Pay Later (MTF) as the order type, enter the quantity, and place the order directly.

Discuss this question