Margin Trading Facility (MTF) keeps attracting investors in the Indian stock market by giving them the chance to trade with leverage. As of January 2, 2026, it’s important to know what the current MTF interest rates are in order to make smart decisions that save money. MTF interest rates are the fees that brokers charge for borrowing money. These fees usually range from 9% to 12% per year across all providers. Kotak Securities stands out because its Trade Free Pro plan has a competitive rate of 9.69% per year, which is around 0.027% every day on the amount financed. This rate just applies to the leveraged part, which makes it cheap to hold holdings without having to pay back right away.
Things That Affect MTF Interest Rates
Broker policies, RBI repo rates, and market liquidity all affect MTF interest rates. Stable repo rates kept borrowing costs low in 2025, which was good for retail traders. Kotak figures out the interest every day on the amount that is still owed. Standard rates are at 9.75% per year, however premium plans like Trade Free Pro lower that to 9.69%. Investors can expand their stakes by up to 5 times on over 1500 equities, but holding them for a long time increases the total cost. For instance, on a trade with ₹80,000 in funding, the daily interest may be roughly ₹21, which shows how important it is to quit trades on time.
What MTF can do for you and what it can’t do
Low MTF interest rates make it easier to acquire things and let you trade without cash by using pledged Demat holdings. Kotak has no limits on how long you can keep stocks and picks the best stocks for sector plays. But there are risks, like margin calls if stock prices go down, which could compel sales. Diversification and stop-loss orders are important to limit losses that get worse.
The Future of IRFC Share Prices in 2026
The future of IRFC share price looks good because India’s rail budget is ₹2.4 lakh crore and IRFC is helping to pay for it. Analysts expect growth of 15 to 20%, aiming for ₹150 to 160, based on profits of ₹6,835 crore in the third quarter of 2025. There are risks like rate hikes and delays, but excellent fundamentals like a 5.83% ROCE make the company more stable.
Using MTF for IRFC Trades
The current MTF interest rates make IRFC a good choice for MTF. You can control ₹100,000 in IRFC shares with Kotak’s 9.69% rate and 5x leverage. You need to invest ₹20,000. If it goes up to ₹140, you might make more money without paying interest. You can trade safely and cheaply by using options like Kotak Neo.
In short, keeping an eye on MTF interest rates and IRFC share price movements at the same time lets you make smart investments. Kotak’s and other similar companies products provide them an edge in this area.
