The Pay Later (MTF) feature from Rupeezy enables you to access margin for purchasing stocks. With this facility, you can obtain up to 5X margin (up to 80% funding) at a nominal daily interest rate. For example, if you wish to purchase a stock priced at ₹1000, you need to pay only ₹200, with the remaining ₹800 funded by Rupeezy. Interest is charged on the ₹800.
For detailed information on the interest rate and applicable brokerage fees, please visit the Pay Later page here
Settlement and Interest Recovery
When you sell the stock, the margin provided by Rupeezy is recovered, and the remaining funds are credited to your trading account. For instance, if you bought shares worth ₹1250 with ₹1000 margin provided by Rupeezy and sold the shares for ₹1500 the next day, Rupeezy would recover ₹1000 and charge one day's interest on ₹1000 (let’s assume ₹3). You would receive ₹497 (i.e., ₹1500 - ₹1000 - ₹3).
Rupeezy charges only brokerage fees on orders and interest on the margin used. All profits from selling stocks, as well as any dividends received, are entirely yours.
Interest Accumulation
Interest is calculated daily and is based on the margin you utilize. Positions are adjusted on a First In, First Out (FIFO) basis. Below are examples illustrating how interest is accumulated:
Example 1:
- Day 1: Purchase ₹1250 worth of shares using Pay Later, with ₹1000 margin provided by Rupeezy.
- Day 10: You are holding the stocks or sold all on Day 10
- Accumulated Interest shown: Interest charged on ₹1000 for 10 days.
Example 2:
- Day 1: Purchase ₹1250 worth of shares using Pay Later, with ₹1000 margin provided by Rupeezy.
- Day 10: Sell half the stocks, and Rupeezy recovers ₹600 of the margin.
- Accumulated Interest shown: Interest charged on ₹400 (₹1000 from Day 1 minus ₹600 from Day 10) for 10 days.
Example 3:
- Day 1: Purchase ₹1250 worth of shares using Pay Later, with ₹1000 margin provided by Rupeezy.
- Day 10: Purchase an additional ₹1250 worth of shares using Pay Later, with ₹1000 margin provided by Rupeezy.
- Day 15: Sell 30% of the stocks, and Rupeezy recovers ₹600 of the margin.
- Accumulated Interest shown: Interest charged on:
- ₹400 (₹1000 from Day 1 minus ₹600 from Day 15) for 15 days.
- ₹1000 for 5 days.
Important Notes
1. Pledging of Stocks: Pledging stocks is mandatory. Failure to pledge may result in the stocks being sold or converted to normal delivery.
2. Margin Availability: The margin provided is based on the stock's volatility and is subject to change. Please check the margin regularly.
How to use Pay Later :
- Select stock of your choice for buying and launch order placement screen
- Select “Pay Later” tab at the top
- Check margin and place order
- Pledge the stocks bought under Pay Later facility by 9pm, link will be sent by 6pm
- Stocks bought using Pay Later facility will be shown in “Pay Later” tab in positions screen
