Pay Later (MTF) by Axis Direct

What is Pay Later (MTF) facility?

Pay Later is designed to give you more flexibility and power while trading. Instead of paying the full amount to buy stocks, you can pay just a small portion—around 20%—and get up to 5X* times the buying power.

You also have the option to carry forward your positions without immediate full payment. It’s an efficient way to free up your capital, take larger positions, and potentially increase your returns, all while managing your cash flow better.

*This limit can vary for different stocks.

Why should an investor use Pay Later (MTF) facility?

As an investor, you can benefit from Pay Later facility. Here’s how!

Leverage:
By utilizing this facility, you can increase your investment size and purchase more shares than you could with your own funds.

Diversification:
Pay Later allows you to invest in a larger variety of stocks with the same amount of funds, providing diversification to your investment portfolio.

Opportunity:
This funding option gives you the opportunity to invest in stocks that you may not have been able to otherwise, potentially leading to higher returns.

Flexibility:
With Pay Later, you can easily purchase and sell stocks, which can be particularly beneficial in a volatile market. This provides you with more flexibility to adjust your portfolio according to changing market conditions.

Let’s understand how Pay Later (MTF) facility works.

Now let's use the illustration to fully understand this idea. If you purchase shares using Pay Later rather than delivery.

Particulars	Delivery	Pay Later
Stock Price	₹100	₹100
Number of Shares	1,000	1,000
Total Investment Value	₹1,00,000	₹1,00,000
Your Upfront Investment	₹1,00,000	₹20,000
Funded by Axis Direct	-	₹80,000

The above calculation is only for illustration*

Be sure to finish the online Pay Later share pledge procedure on the Depository (NSDL/CDSL) on the same day that you get delivery of the purchased stocks in your Demat account.

What if stock price goes below the purchase price?

Investors may be subject to a margin call if the market price of a stock declines below the acquisition price of the shares under margin funding. Adding more money to their account in order to reach the minimum margin requirement is known as a margin call.

Normally the minimum margin requirement is a percentage of the total value of the securities held in the account. The investors may be asked to deposit more cash to bring the margin level back up to the minimum requirement.

Some more important facts:

Tenure: You can hold your position for up to 240 trading days
Convert to cash delivery anytime: Flexibility to pay outstanding amount anytime and stop paying interest charges
Square off anytime: Option to "square-off" your open position any time before the due date
Eligible Stocks: More than 800+ stocks are eligible for Pay Later. The margins are charged considering the category of stock, exchange guidelines and internal risk management

How to place an order with Pay Later (MTF) facility?

Once you have activated this facility you can place orders using any of our platforms, you just need to choose Pay Later product from the Product Type drop down.

*In line with regulatory requirements, the securities bought via Pay Later are required to be pledged in favor of the broker.

** Pay Later is Axis Direct’s E-Margin/MTF offering

For more information on this, please refer to FAQs.

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