Is MTF ever worth it?
Only if the share rises by more than the cost of the loan, soon enough, and you can handle a margin call if it falls instead.
The rise needed to break even on ₹1,33,333 of shares
| Held 7 days: costs ₹378 | +0.3% |
|---|---|
| Held 30 days: costs ₹1,298 | +1.0% |
| Held 90 days: costs ₹3,698 | +2.8% |
| Held 180 days: costs ₹7,298 | +5.5% |
₹1,00,000 borrowed. Costs include interest, brokerage, pledge, unpledge, DP charges and GST. Zerodha's published rates, checked 2 Nov 2026. The broker funds 75% here; the real share depends on the stock.
How much must a share rise to cover the cost?
In this example, about 1.0% in 30 days and 5.5% in 180. Below that, you lose money even though the share went up.
Your own numbers will differ. Our calculator gives the all-in cost at each broker for your amount and days.
Sources: our broker comparison
How does it compare with using only your own money?
If the share rises 5% in 30 days, ₹33,333 of your own money makes ₹1,667. With MTF it makes ₹5,369 after costs.
That extra gain is the reward for the risk. With the same 5% fall, the MTF trade loses ₹7,965 after costs, against ₹1,667 with your own money. Taxes on the gain are left out here and differ with your situation.
Sources: our broker comparison
When can MTF make sense?
When you expect a move within days or weeks that is clearly bigger than the cost, and you have spare cash for a margin call.
All three need to be true. A good idea with no spare cash can still end in a forced sale. This is a way of thinking it through, not advice to use MTF.
When is it a poor fit?
For long holding, for short-term bets with no clear exit, and for adding to a stock that has already fallen.
Adding borrowed money to a falling position makes it bigger just as the risk has risen. Listing-day and other quick bets can be priced well beyond the cost of the loan, in either direction.
What is the simpler option?
Buy fewer shares with your own money.
The gain is smaller, but there is no interest and no margin call, and you can hold through a fall for as long as you like.