Advertisement
Updated April 21st 2025, 20:16 IST
Paytm Money Slashes Interest Rates, Sparks Margin Trading Shake-Up to Woo Investors
The platform has introduced a tiered interest rate system, with rates starting as low as 9.75% per annum.
Advertisement
Paytm Money, the investment platform owned by One 97 Communications (OCL), has rolled out a more affordable pricing structure for its newly launched Pay Later (Margin Trading Facility - MTF) service. The company claims that this update aims to make margin trading more accessible and cost-effective for both everyday investors and high-volume traders.
The platform has introduced a tiered interest rate system, with rates starting as low as 9.75% per annum—significantly lower than the previous flat rate of 14.99% per annum. This new model links interest rates to the size of the funding book, offering the lowest rates to users with a funding book over Rs 25 lakh.
However, smaller investors with a book between Rs 1 lakh and Rs 25 lakh will continue to be charged 14.99% per annum.
It is to be mentioned that Paytm Money Limited is a SEBI registered Investment Adviser and offers investment execution & advisory services.
To further enhance affordability, Paytm Money has also revised its brokerage fee to 0.1% per trade. The new rate aims to strike a balance between platform sustainability and user-friendly pricing.
The Vijay Sekhar Sharma-led firm claimed that this strategic shift is designed to broaden access to margin trading, particularly for first-time or cost-sensitive investors. It comes amid growing demand for flexible and cost-efficient trading solutions.
“By addressing key user concerns such as high interest charges and opaque pricing, Paytm Money hopes to encourage more active participation in the markets,” the company said in a statement
The updated interest rates will take effect on April 18, 2025, while the new brokerage fee will be implemented from May 18, 2025.
Paytm (an acronym for "Pay Through Mobile") is a homegrown multinational financial technology company, that specializes in digital payments and financial services, based in Noida, India. In partnership with financial institutions, PayTM also offers financial services such as microcredit and buy now, pay later to its consumers and merchants.
Published April 21st 2025, 20:16 IST