Wealth-tech platform Paytm Money, a wholly-owned subsidiary of One 97 Communications Limited (OCL), which operates Paytm, on April 21 announced new cost-effective interest rates and brokerage structure for its recently launched Pay Later (MTF - Margin Trading Facility) offering.
With this, the platform hopes to drive affordability for both retail and high value investors.
The newly introduced slab-based interest rates, starting at 9.75% per annum (p.a.), down from the current flat 14.99% p.a., are based on funding book size. The platform has also introduced a revised brokerage of 0.1% per trade that balances affordability and platform sustainability.
"Retail investors can now access Pay Later (MTF) at an industry-leading rate of 9.75% p.a., making it easier to start trading affordably. Additionally, high value traders with a funding book size above Rs 25 lakh will also benefit from the same 9.75% p.a. interest rate, incentivising greater trading activity and deeper engagement. Investors with a book size of between Rs 1 lakh and Rs 25 lakh will have a 14.99% p.a. interest rate," said Paytm Money.
Paytm Money’s revamped MTF offering is designed to address core user concerns around cost-efficiency, transparency, and accessibility. This new interest rate structure is designed to provide better control over costs and fair pricing for all investors.
Paytm Money spokesperson said: “We remain committed to delivering investor-friendly solutions as part of our mission to democratise wealth management in India. With cost-effective interest rates, we hope that more and more investors will be able to begin their wealth management journey, while the updated brokerage model ensures fair pricing and supports the platform's long-term sustainability.”
The revised interest rates will be applicable starting April 18, 2025 while the updated brokerage of 0.1% per trade will be applicable from May 18, 2025.
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