The funding amount is the portion of the total trade value that is financed by Alice Blue under MTF.
Let’s understand with an example:
Suppose you want to buy a stock that costs ₹1,000 per share, and it is eligible for 3x margin.
You have ₹1,000 in your account.
With 3x margin, you can buy shares worth:
₹1,000 × 3 = ₹3,000
Now, your contribution (margin) is ₹1,000.
So, the funding amount from Alice Blue is:
₹3,000 (total value) – ₹1,000 (your money) = ₹2,000
This ₹2,000 is the funded amount, and you will pay interest on this until you close the position or repay.
Alice Blue charges an interest of 18% per year on the funded amount under Margin Trading Facility (MTF).
To make it easier to understand:
18% per year is roughly 0.049% per day.
This daily interest is calculated only on the amount borrowed (i.e., the part funded by Alice Blue, not your own contribution).
Example:
If Alice Blue funds ₹10,000 for your MTF trade:
Daily interest = ₹10,000 × 0.049% = ₹4.90 (approx.)
This interest keeps adding up daily until you square off or clear the dues.
Yes, interest is charged daily on the borrowed amount under the Margin Trading Facility (MTF).
