Your client needs temporary liquidity, preferably without having to sell any fund units or while preserving his settlement tax-free holdings? With immediate effect, we can offer your clients the securities loan of Fondsdepot Bank as an alternative.
Why sell tax-free fund units when the securities loan provides your client with temporary liquidity? There is no ring-fencing on the use of the amount loaned. In addition, your client benefits from our flexible modalities. For example, share disposals or setting up in- and out-payment plans are possible at any time during the term. Furthermore, repayment can be financed by selling securities.
The advantages of our securities loan
The securities loan features variable interest rate pegging, coupled to the reference interest rate. Depending on the current market situation, interest adjustments are possible at any time. A 50% loan on the investment fund can be taken out with our securities loan. In addition, we will provide you with a credit of up to 40% of the custody account value.
Current interest rate (as of 1 April 2020):
4.34 % p.a. (effective 4.42 % p.a.)12
1 Since 1.1.2017, the standard interest conditions of Fondsdepot Bank apply.
2 The reference interest rate for the securities loan is the EURIBOR three-month money market rate published by the "Deutsche Bundesbank". If the main bases of calculation of the reference interest rate change or if the reference interest rate can temporarily or permanently no longer be determined, the Bank shall use the reference interest rate that replaces EURIBOR Three-Month Money or another suitable reference interest rate. This reference interest rate cannot be named at present. The Bank will inform about the new reference interest rate in due course.
Overview of all services
- Unlimited term
- Uncomplicated application without creditworthiness information
- Fast payment
- No ring-fencing of the loan amount
- Up to 40% credit line on the custody account value
- Accessing the shares and money is possible at any time
- Credit lines possible from 5,000 EUR to 100,000 EUR
The securities loan - what you need to know
A securities loan is transferred as a cash credit to an existing fund custody account. The name reflects the fact that this form of credit is chiefly used to buy securities. At the same time, there are two ways in general of making use of the securities loan:
- money can be borrowed from the bank for the purpose of buying securities. However, the securities acquired in this way then serve as collateral for the loan. This form of loan is also commonly known as a Lombard loan.
- If there are already securities in a custody account, the loan is taken out against them.
One great advantage of the securities loan vis-a-vis other financing versions for your clients: the securities loan can be granted quickly and used flexibly, since after the credit line has been granted, it can be accessed at any time and as a result you can react fast to particular market developments. Securities loans also provide more flexibility in terms of repayment compared to other financing versions. Borrowers can decide for themselves when and how much they want to repay, since no minimum repayment is prescribed.
Securities loan information
Credit transactions always involve a certain amount of risk. Therefore, exceeding a particular credit line should be avoided. Repaying the loan is essential. Please bear in mind that the investment fund deposited with us as collateral has a current daily price, which is subject to stock market fluctuations. In the event that the prices of the securities fall, we may have to request reinforcement of the collateral by the client. The client can then decide whether he wishes to repay his loan or reinforce the collateral.