Paytm Money, a subsidiary of One 97 Communications Limited (OCL), has introduced a new set of cost-effective interest rates and a revised brokerage structure for its Pay Later (Margin Trading Facility – MTF) offering. This development aims to provide greater affordability and access for both retail and high-value investors.
The newly implemented slab-based interest rates start at 9.75% per annum (p.a.), a significant reduction from the previous flat rate of 14.99% p.a. These new rates are linked to the funding book size of the investor. For retail investors, the revised interest rate of 9.75% p.a. is designed to make trading more affordable, especially for those just beginning their investment journey. Additionally, high-value traders with a funding book size exceeding ₹25 lakh will also be eligible for the same 9.75% p.a. interest rate, encouraging more trading activity. Investors with a funding book size between ₹1 lakh and ₹25 lakh will continue to be charged an interest rate of 14.99% p.a.
In addition to the reduced interest rates, Paytm Money has also updated its brokerage structure. The platform now charges a brokerage of just 0.1% per trade, which is intended to offer both affordability and long-term platform sustainability. The revised interest rates will be effective from April 18, 2025, while the updated brokerage structure will come into effect on May 18, 2025.
The changes are aimed at making margin trading more accessible to a wider range of investors, from entry-level participants to experienced traders. With this move, Paytm Money hopes to meet the growing demand for more flexible and cost-efficient investment products. The platform’s revamped MTF offering is designed to address the concerns of users who seek transparent and competitive pricing.
By introducing these cost-effective measures, Paytm Money seeks to support its mission of democratizing wealth management in India. The new interest rates and brokerage model are part of the company’s ongoing efforts to ensure that investing remains accessible and affordable for all types of investors.
