Paytm arm introduces new slab-based interest rates for trading facility

Paytm Money, a wholly-owned subsidiary of One 97 Communications (OCL), on Monday introduced a new cost-effective interest rates and brokerage structure for its recently launched Pay Later (MTF - Margin Trading Facility) offering.

The newly implemented slab-based interest rates, beginning at 9.75% per annum (p.a.) - a reduction from the previous flat rate of 14.99% p.a.are linked to the funding book size. Additionally, the platform has introduced a revised brokerage of 0.1% per trade, aiming to strike a balance between affordability and long-term platform sustainability.

With an aim to drive affordability, retail investors can now access Pay Later (MTF) at an industry-leading rate of 9.75% p.a. Similarly, high-value traders with a funding book exceeding ₹25 lakh will enjoy the same 9.75% p.a. interest rate, encouraging increased trading and deeper participation. Meanwhile, investors with a book size ranging from ₹1 lakh to ₹25 lakh will be subject to a 14.99% p.a. interest rate.

The reduction in the rates comes at a time when retail and high-volume traders alike are seeking smarter, more flexible ways to leverage market opportunities. This 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.

The revised interest rates will be effective from April 18, 2025 while the updated brokerage of 0.1% per trade will be applicable from May 18, 2025.

“We remain committed to delivering investor-friendly solutions as part of our mission to democratize 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”, a spokesperson from Paytm Money said.

Shares of One 97 Communications Limited (Paytm) closed 3.10% higher at ₹875.95 apiece on the NSE on April 21, 2025.

Established in 2017, Paytm Money is a prominent wealth-tech platform that simplifies wealth management and equity investing through a technology-driven approach. With a strong focus on user needs, Paytm Money is dedicated to making financial markets accessible to all. The platform enables users to effortlessly invest in equities, F&O, mutual funds, SIPs, IPOs, NPS, debt instruments, and more—offering a seamless experience through user-friendly tools. It operates as a wholly-owned subsidiary of One 97 Communications Limited (OCL).