Yes, Angel One offers margin funding through its Margin Trading Facility (MTF). This service allows you to buy shares by paying a part of the amount upfront and borrowing the rest from Angel One. It helps increase your buying power and invest more in the stock market.
What is Margin Trading Facility (MTF) at Angel One?
Margin Trading Facility means you can buy shares by paying a small part of the total price, and Angel One lends you the rest. This increases your investment amount without needing full money upfront. You need to pledge shares as security to use this facility.
How to Use Margin Funding on Angel One?
To use margin funding, buy shares on Angel One and select 'Margin' while placing the order. After purchase, you need to pledge the shares via CDSL by following the link Angel One sends. Once pledged, the loan is approved and you only pay part of the price, borrowing the rest.
What Are the Charges and Interest for Margin Funding?
Angel One charges interest at around 0.041% per day (about 15% per year) on the borrowed amount. There is also a pledge and unpledge fee of ₹20 plus GST per scrip. Interest starts from the 2nd day after the trade until you repay the loan or the shares are sold.
Who Should Use Margin Funding?
Margin funding is suitable for investors who want to increase their buying power in the stock market but don’t want to use all their own money upfront. However, it carries risks because if the stock price falls, you might have to pay more or face a margin call.
What Are the Risks of Margin Funding?
Margin funding can be risky if the share prices drop because you still owe the borrowed money plus interest. You might face a margin call where you have to deposit more funds or sell shares. It is important to understand these risks before using margin funding.
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