https://v2.webnotes.in/tags/mtf-interest/Recent content in MTF Interest on WebNotesHugoen-INFri, 19 Jun 2026 00:00:00 +0000https://v2.webnotes.in/how-to-repay-mtf-interest-zerodha/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-repay-mtf-interest-zerodha/<aside class="callout callout--warn" role="note"> <strong class="callout__label">Leverage risk disclosure</strong> <div class="callout__body">An MTF position is a leveraged loan from Zerodha secured against the purchased shares. Daily interest accrues at approximately 0.04% per day on the outstanding loan balance. If the share price falls sharply, Zerodha&rsquo;s risk management system may liquidate the MTF position without prior notice to recover the outstanding loan. Timely repayment and monitoring of margin adequacy are the primary tools to avoid forced liquidation and its associated losses. MTF is not appropriate for investors who cannot monitor positions regularly.</div> </aside> <p>Repaying an MTF position on <a href="https://v2.webnotes.in/zerodha/">Zerodha</a> involves settling the outstanding funded amount (principal) and any accrued interest, which releases the pledged shares from the MTF lien and converts them back to free CNC delivery holdings. Repayment can be done by cash transfer (keeping the shares) or by selling the MTF shares (using sale proceeds to settle the loan). Understanding both paths, and the timing of daily interest debits, is important for optimising the total cost of MTF positions.</p>