Benefits of Stock Loans
With our stock loans, there’s no need for a corporate or personal guarantee. You don’t have to put other assets on the line to secure a loan; instead, enjoy these benefits of a stock loan using shares traded on Bursa Malaysia:
- Risk management: Other forms of borrowing can leave you struggling with high interest and poor repayment terms. Our stock loans are a great option when you want to reduce borrowing risks.
- Immediate liquidity: When you don’t want to sell your stock to convert into cash, this type of loan gives you immediate liquidity. It allows you to use your shares to secure the loan without selling your shares and creating a taxable event.
- Portfolio diversity: This type of lending frees up cash to pay expenses as well as to potentially expand and improve a business. You will diversify your holdings and portfolio without selling your shares.
How Do Stock Loans Work?
Also known as securities lending, these loans are available to help investors keep the stock they own while still having access to the cash they need in order to make other investments. Our borrowers gain the opportunity to dip into the value of their non-marginable stock quickly and easily without having to wait a long time for the money.
Our loan amounts are dependent on characteristics of the collateralized security, including the number of shares, price, volatility, and additional criteria. By transferring your stock to us, you can be assured of receiving a loan against its value. All you have to do is make quarterly interest payments during the life of the loan. We keep the process simple: once you fully repay the borrowed amount, your stock will be transferred back to you.