India’s retail investing wave just got another upgrade. Paytm Money, the investment arm of One97 Communications, has reworked its ‘Pay Later’ Margin Trading Facility (MTF), making it more appealing and accessible to retail investors. With lower interest rates and a simplified brokerage fee, the move is designed to reduce trading costs and increase financial inclusion.
This revamped offering could be a game-changer for investors looking to leverage more without burning a hole in their pockets.
What’s New in Paytm Money’s ‘Pay Later’?
Effective April 18, 2025, Paytm Money rolled out a slab-based interest model for margin trading:
• For large traders (?25 lakh+ funding book): Interest rate is now 9.75% p.a., down from the earlier 14.99%.
• For smaller traders (?1 lakh to ?25 lakh): The interest rate remains 14.99% p.a.
• From May 18, the brokerage on MTF trades will be flat at 0.1% per trade.
This makes Paytm’s offering among the most competitively priced MTF products in the Indian market.
Why It Matters for Retail Investors
1. Lower Cost of Leverage
With a reduced interest rate of 9.75% for high-volume users, traders can now access capital more affordably, making margin trading a less expensive option than before.
2. Flat Brokerage = More Transparency
A single, predictable charge of 0.1% per trade helps investors plan their trades better. No hidden fees, no confusion—just clean numbers.
3. Financial Empowerment
By introducing slab-based pricing, Paytm Money is encouraging smaller traders to grow gradually. It’s a step toward more disciplined investing behavior, without overwhelming retail participants with complexity.
Growing Interest in Margin Trading
India’s retail trading scene has seen a massive surge post-2020. According to SEBI data, over 7 crore individual demat accounts were active as of early 2025. Margin trading, once seen as a tool for the elite or institutions, is now being explored by regular investors.
But with power comes responsibility. Margin trading can amplify both gains and losses. Paytm’s move simplifies access but also requires investors to be informed and cautious.
A Strategic Fintech Push
This revamp isn’t just about better pricing. It’s a deliberate strategy by Paytm Money to capture young investors who are looking for user-friendly tools. As competition heats up among fintech platforms, Paytm’s approach signals a shift toward cost-efficiency and transparency.
In their official statement, a company spokesperson said:
“We remain committed to delivering investor-friendly solutions as part of our mission to democratize wealth management in India.”
Final Thoughts
Paytm Money’s new ‘Pay Later’ isn’t just a facelift—it’s a foundational change that may reshape how retail investors interact with leverage. While margin trading isn’t for everyone, initiatives like these—grounded in lower cost and clearer structures—help make the capital markets more inclusive.
Just remember: use the tools wisely, and always understand what you’re signing up for.
Disclaimer: This article is for educational purposes only. It does not constitute investment advice or any recommendation to buy, sell, or hold any financial product.
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