How is the interest charges calculated on Pay Later (MTF)?
Interest calculation is done on funded amount per share using the below formula from T+1 day onwards.
Funded amount Interest rate p.a. /365*
Example:- Mr. A wanted to Buy 100 shares of ABC limited trading @ Rs.1000. where KSEC is giving 4X leverage. MTF interest rate of Mr A is 12%.
Particulars
Total Buy value
Calculation
100*1000
Final value
Rs.1,00,000
Particulars
Ksec Leverage
Calculation
4X
Final value
Particulars
Margin required
Calculation
1,00,000/4
Final value
Rs.25,000
Particulars
KSEC funding
Calculation
25,000 - 1,00,000
Final value
Rs.75,000
Particulars
MTF interest rate
Calculation
12%
Final value
Particulars
Interest charged per day
Calculation
75,000*12%/365
Final value
Rs.24.65 per day
| Particulars | Calculation | Final value |
|---|---|---|
Total Buy value | 100*1000 | Rs.1,00,000 |
Ksec Leverage | 4X | |
Margin required | 1,00,000/4 | Rs.25,000 |
KSEC funding | 25,000 - 1,00,000 | Rs.75,000 |
MTF interest rate | 12% | |
Interest charged per day | 75,000*12%/365 | Rs.24.65 per day |
Rs.24.65 is the per day interest that would be charged to the users on the funded amount.