FAQs on Margin Plus (Funding at 5paisa)

FAQs on Margin Plus (Funding at 5paisa)

Q 1) What is Margin Plus(funding at 5paisa)?
 
MarginPlus is an exclusive facility designed by 5paisa for its users, which gives you the ability to trade in all segments using your entire net available margin! i.e. with MarginPlus you can trade entirely using collateral margin (pledged securities). 
 
To put it in simple terms, if you don't have enough cash to fulfil the different cash margin requirements across segments, or you want to trade using leverage, then MarginPlus is the product for you!
 
The funding provided, and the cash margin shortfall covered by 5paisa will be free of any charge for intraday trades. The same for All overnight(F&O)/Delivery(Cash)trades will attract nominal interest rates starting at just 0.03% per day.
 
The top benefits that Margin Plus users can avail of are-
  1. Zero cash margin requirement for Intraday trades across all segments, no interest charged. 
  2. No need to maintain a 50% cash margin in F&O (Lowest interest rates starting @10.95% p.a.)
  3. Avail up to 5X margin funding for cash delivery orders starting at @ 0.045% per day 
  4. Real-time activation of MarginPlus while placing orders across segments.
  5. Increase your ROI on short-term trades with the help of funding.
Below table contains the details of interest rates applicable to users under MarginPlus:

Particulars
Interest rates under MarginPlus
Intraday Rates (All Segments)
0.00%
Overnight Rates for F&O Segment
0.04% Per Day (Networth Below ₹5 Lakhs*)
 
0.03% Per Day (Networth Above ₹5 Lakhs*)
Rates on Delivery Cash Segment(MTF)

0.06% Per Day (Networth upto ₹5 Lakhs*)

0.05% Per Day (Networth between ₹5 Lakhs to ₹1 Cr*)

0.045% Per Day (Networth above ₹1 Cr*)

 
*Interest rates given above for the cash segments are applicable from 1st Oct, 22. Prior to that interest rates in the cash segment were flat 0.06% per day.

*Networth includes your holdings in cash & stocks on 5Paisa.

Minimum Cash Margin Requirement for MarginPlus User vs. Non-MarginPlus user
 
Segment
MarginPlus Customer
Non-MarginPlus Customer
Intraday
0%
50%
Overnight (F&O)
0%
50%
Delivery Cash
0%
100%
 
Notes to remember:
  1. You will need to pledge your existing holdings to avail the MarginPlus benefits
  2. 5paisa’s Margin Trading Facility will now only be available for MarginPlus customers 
  3. You will be required to pledge the shares purchased against collateral for funding the next day (Margin Trading Facility).
  4. Interest will be changed only to the extent of funding used from 5Paisa
  5. Activation of margin plus will be real-time, while deactivation of the same will take 24 hours
Q 2) What are the changes in interest rates in Margin plus (funding at 5paisa)?

We’re thrilled to announce that you can now start trading with leverage at a reduced interest rate. MarginPlus is the most preferred feature that helps every trader/investor to meet their cash margin requirements in all segments, and avail of 5paisa’s funding facility (Margin Funding for cash and derivative segment).

Starting from 1st October 2022, 5paisa will be reducing the interest rate for our funding facility in the cash segment from a flat 0.06% per day to a slab wise rate starting at only 0.045% per day! This will allow you to save upto 25% interest charges on your trades! 

Note: Interest rates will remain the same as before in the derivative segment.
 
What are the new interest rates?

Now save more with MarginPlus based on the Networth (ledger balance + holding value) Slab

Your Networth
Interest Rates
Your Savings
Above 1Cr.
0.045% per day (16.43% p.a)
25.0%
Between 5Lac. and 1Cr.
0.05% per day (18.25% p.a.)
16.7%
Below 5Lac.
0.06% per day (21.95% p.a.)
-

Note:
Your networth for the interest slab will be determined as the Sum of your Gross Holdings and Available Ledger Balance on the last date of each month. Interest for the month will be charged according to that slab. 

Q 3) How are the interest rates calculated in Margin Plus (funding at 5paisa)? 

Below are a few examples to illustrate how interest will be calculated

Cash Segment

Example 1:
Suppose you have Stocks worth Rs.2Cr. In your demat account, an available ledger balance of Rs.15Lac. Here your networth will be Rs.2.15Cr.

Stocks in Demat
Available Ledger Balance
Networth
2,00,00,000
15,00,000
2,15,00,000

Now you purchase stocks worth 30Lac., then the funding provided by 5paisa will be Rs. 15Lac. Now the interest rate applicable to you will be 0.045% per day, and hence interest charged will be Rs.30 per day

Stocks purchased
5paisa Funding
Interest%
Interest charged
Rs.30,00,000
Rs.15,00,000
0.045% per day
Rs.675 per day

Example 2:
Suppose you have Pledged Stocks worth Rs.6Lac. In your demat account, an available ledger balance of Rs.0. Here your networth will be Rs.6Lac.

Stocks in Demat (pledged)
Available Ledger Balance
Networth
6,00,000
0
6,00,000

Now you purchase stocks worth 10,000, then the funding provided by 5paisa will be Rs. 60,000. Now the interest rate applicable to you will be 0.05% per  day, and hence interest charged will be Rs.30 per day

Stocks Purchased
5paisa Funding
Interest%
Interest charged
Rs.10,000
Rs.10,000
0.05% per day
Rs.5 per day

Derivative segment

Below are a few examples to illustrate how interest will be calculated

Example 1:
Suppose you have Stocks worth Rs.5.85Lac. In your demat account, an available ledger balance of Rs.15,000. Here your networth will be Rs.6Lac.

Stocks in Demat
Available Ledger Balance
Networth
5,85,000
15,000
6,00,000

Now you enter into a futures contract with Rs.1,00,000 as the required margin, you will need to maintain at least 50% of the order value in cash, thus the cash margin required for the order will be Rs.50,000. 
The funding provided by 5paisa will be Rs.35,000 against this required cash margin. Now the interest rate applicable to you will be 0.03% per day, and hence interest charged will be Rs.10.5 per day

Contracts Purchased
Cash Margin Requirement
5paisa Funding
Interest%
Interest charged
Rs.100,000
Rs.50,000
Rs.35,000
0.03% per day
Rs.10.5 per day


Example 2:
Suppose you have Pledged Stocks worth Rs.4Lac. In your demat account, an available ledger balance of Rs.0. Here your networth will be Rs.4Lac.

Stocks in Demat (pledged)
Available Ledger Balance
Networth
4,00,000
0
4,00,000

Now you enter into a futures contract with Rs.1,00,000 as the required margin, you will need to maintain at least 50% of the order value in cash, thus the cash margin required for the order will be Rs.50,000. 
The funding provided by 5paisa will be Rs.50,000 against the required cash margin. Now the interest rate applicable to you will be 0.04% per day, and hence interest charged will be Rs.20 per day

Contracts Purchased
Cash Margin Requirement
5paisa Funding
Interest%
Interest charged
Rs.50,000
50,000
Rs.50,000
0.04% per day
Rs.20 per day


Q 4) How do I avail funding benefits everytime I trade with 5paisa?

To avail funding benefits while trading, you need to follow the below easy steps:
Ensure your MarginPlus is activated, then purchase any MTF eligible stocks
If your account goes into debit greater than Rs.500, then you’ll receive communication from 5paisa and CDSL via email and SMS
The message will contain a link, which will redirect you to the CDSL page, where you will need to fill in your PAN or Demat account number and proceed
Now select the stocks you wish to pledge and then click on generate OTP
You’ll then receive an OTP on our registered mobile number
If you successfully enter the OTP and pledge your shares within T+2 days of purchase, 5paisa will fund your debit, and you will be able to hold onto your shares for a longer period of time
If you do not accept the OTP within T+2, your position will be squared off by T+7, unless you add the required funds or square-off your position
Q 5) What are the current Offers of MarginPlus (funding at 5paisa)?

OPEN OFFERS

1) Easy MTF Offers (selected users)

Easy MTF is an offer that the 5paisa is providing exclusively to its new Margin Trading users for the first 30 days. Eligible users will receive an interest reversal of up to ₹10,000 on interest charged on MTF.

Click here to know the T&C 

2) Discount MTF Offer (selected users)

Discount MTF is an offer that the 5paisa is providing exclusively to a few MTF users Eligible users will effectively be allowed to use MTF at a discounted rate of 0.055% instead of the usual 0.06% for 90 days! The benefit will be provided in the form of an interest reversal which will happen on a monthly basis.

Click here to know the T&C 

3) '2000 ka Fayda' - Interest reversal on Margin Trading (selected users)

‘2000 ka Fayda’ is an offer that the 5paisa is providing to its selected Margin Trading customers. Eligible users will get a reversal of upto Rs.2000 on interest charged under Margin Trading. Use Margin Trading and pledge your stocks now to avail of this exclusive benefit!

Click here to know the T&C 

4) Zyada ka Fayda Offer (selected users)
'Zyada ka Fayda' is an offer that 5paisa is providing exclusively to its new Margin Trading users for the first 30 days. Eligible users will receive an interest reversal of up to ₹10,000 on interest charged on MTF.

Click here to know the T&C 

CLOSED OFFER: NIL

Q 6) Where Can I see the reports on Interest change?

You can see the reports by following the below Steps:
  1. Login to 5paisa.com 
  2. Click on your name on the top right corner
  3. Click on profile, then ‘my profile’
  4. Click on reports, then DPC
  5. Choose the time period for which you want the report
Q 7) From when are the new MarginPlus (funding at 5paisa) interest rate changes applicable?

The Update in interest rates for MarginPlus will be effective from 1st October 2022. 
If you have any open MTF positions as on 1st October 2022, the interest charged on all your MTF positions from that day onwards will be according to the new rates as per your Networth slabs* 
  1. *If your Networth is above 1Cr then the interest rates charged will be 0.045% per day
  2. If your Networth is between 5Lac and 1cr then the interest rates will be 0.05% per day
  3. If your Networth is below 5Lac then the interest rates will be 0.06% per day

Q 8) How to Activate MarginPlus (Funding at 5paisa)?

Follow these easy steps to get access to MarginPlus and its benefits-
  1. Login to your account 
  2. Go to the live market section 
  3. Select any stock the quick order page will appear
  4. On the bottom right corner above the ‘Buy’ And ‘Sell’ button, you’ll see the ‘Activate’ switch written in green, click on it
  5. Here you activated your MarginPlus
Q 9) How to deactivate MarginPlus (Funding at 5paisa)?

Follow these easy steps to deactivate the MarginPlus-
  1. Login to your account 
  2. Go to the live market section 
  3. Select any stock, the advance order page will appear
  4. At the bottom of the screen, you’ll see the 'Learn More' option
  5. Click on 'Learn More,' the deactivation page will appear
  6. Click on the Deactivate MarginPlus option
  7. Then click on ‘Yes Cancel’ if you want to deactivate or else click on ‘Not Now’ the changes will be restored

Q 10) If I have zero cash balance in my trading account but have shares in my portfolio, how can I trade?

You can trade even without any cash in your account. First you need to make sure that you have MarginPlus activated, then you can pledge the stocks in your demat account. Pledging will allow you to use collateral margin for your trades. Usually you cannot trade using only collateral margin, however MarginPlus allows you to trade entirely using collateral against a nominal interest rate!

To pledge your stocks for collateral benefit, you need to follow the below steps:
  1. Go to the 'HOLDINGS' page on the 'BOOK' section in your 5paisa Mobile app.
  2. Click on the Pledge/Unpledge button on the bottom right side of your screen, after which you can select the shares you wish to pledge and click on the 'Submit Request' button
  3.  A link for OTP authentication will be generated and sent on your registered Mobile Number and registered Email ID from CDSL (Depository Participant).
  4. On clicking the link, you will be redirected to the CDSL webpage and prompted to enter your PAN or BOID (Your Demat account number. You can check your demat account number in the Profile section of App and web).
  5. Once the valid PAN / BOID are entered, a list of all transactions pending for authentication will be displayed to you. After that, OTP will be generated and sent on registered Mobile Number and registered Email ID of the client. OTP will remain valid for 15 minutes only.
  6. You will have to then authenticate the same by entering the OTP after which the pledge shall be marked in favour of 5Paisa.
  7. Once your request is received the margin benefit will be given to you on the same day.
Q 11) Is there a list of the stocks that I can avail 5paisa's funding facility for?

Yes, we do have the list of the MTF eligible stocks. Click here to find the list of scrips on which you can avail 5paisa's funding facility.