How to Use Pay Later (MTF) on 5paisa: A Step-by-Step Guide

There’s nothing more frustrating for a trader than spotting the right stock at the right time—only to fall short on funds. Sometimes it’s because your capital is tied up elsewhere. Other times, you’re just waiting for a payout to settle. But missing that window can mean walking away from potential gains.

That’s where 5paisa’s Pay Later (MTF) comes in handy. It lets you buy eligible stocks by paying only a portion of the amount upfront, while 5paisa funds the rest.

In this guide, we’ll show you how to activate and use 5paisa Pay Later (MTF) step by step, explain how the margin works, and help you make the most of this powerful feature.

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Getting Started with 5paisa Pay Later (MTF)

Before diving into margin-funded trades, it's important to know what you’re signing up for. 5paisa Pay Later (MTF) is a broker-backed funding facility that lets you buy shares by paying only a portion of the trade value upfront. The rest is covered by 5paisa, while you pay a nominal daily interest on the borrowed amount.

Here’s what makes this Margin Trading Facility stand out: you can fund trades with just 4X leverage, trade from a list of over 750 eligible stocks, and, for a limited time, enjoy 0% interest for the first 30 days. Even intraday traders with MTF enabled benefit from zero interest charges, without any hidden conditions. It’s designed to give you flexibility and control—without the usual headaches associated with margin.

Step-by-Step Guide to Using 5paisa Pay Later (MTF)

Once your 5paisa Pay Later (MTF) is activated, placing a margin-funded order is surprisingly simple—and doesn’t require any complex steps or navigating deep menus.

Here’s how you can get started:

• Pick a Stock from the Approved List: First, choose the stock you want to trade. 5paisa offers a curated list of 750+ MTF approved list of securities, so make sure the stock you select is eligible under the Margin Trading Facility. 
• Enter Your Order Details: After selecting the stock, enter the quantity or lot size you want to purchase, along with the price at which you'd like to place your order. The app will show the total order value as usual.
• Select the 'Pay Later' Option on the Order Form: When you move to the final order screen—where you normally review or confirm your trade—you’ll see an option to choose how you want to fund the trade. Instead of the regular delivery method, select ‘Pay Later’. Alternatively, you can also enable the Pay Later feature by accepting the terms on the Margin page.
• Review Margin Usage Before Confirming: The system will instantly calculate how much margin you need to pay upfront (typically just 25% of the trade value) and how much will be funded by 5paisa.
• Place Your Order: Once everything looks good, confirm the order. The stock will be added to your MTF holdings, and the remaining funded amount will be reflected accordingly in your margin balance.

That’s it. No pledging of securities. No additional documentation. Just a seamless way to trade using partial capital—built right into your normal trading workflow.

Understanding Margin Requirements & Charges

Margin trading isn't free money—it’s a leveraged facility that must be used wisely. Here’s what to keep in mind:

• Upfront Margin Requirement: For most stocks, you can start trading with just 25% of the total value. So, a ₹1,00,000 position might only require ₹25,000 upfront, effectively availing 4X leverage.
• Interest Charges: 5paisa charges a daily interest rate of 0.045%. Interest applies only to the borrowed portion and only for the number of days the position is held.
• Intraday Perk (if MTF is enabled): If you’re placing intraday trades using 5paisa Pay Later (MTF), you can do so without any interest charges—a significant benefit for short-term traders.
• Zero Interest for 30 Days (Limited-Time Offer): New users of MTF enjoy interest-free margin for the first month, making it a smart time to explore this facility without cost pressure.
• Margin Maintenance: You’ll need to maintain the required margin percentage in your account. If the value of your holdings drops, you might receive a margin call. Failure to top up your account can lead to a position square-off.

All of these details are visible in real-time within the app, so there’s no guesswork involved.

Final Thoughts

Trading on margin can be a powerful tool—when used with care. 5paisa Pay Later (MTF) takes the complexity out of traditional Margin Trading Facilities and replaces it with clarity, convenience, and flexibility. With minimal paperwork, clear terms, and a smooth in-app experience, it allows traders to seize opportunities without being held back by capital limitations.

Whether you’re trading news-based moves, capitalising on short-term volatility, or simply aiming to do more with less, 5paisa Pay Later (MTF) gives you the leverage to act—on your terms.

Just remember, while the upside potential is attractive, margin trading also comes with risks. Monitor your positions, manage your exposure, and ensure you always have enough balance to meet margin calls when they arise.