wazua Sat, Sep 20, 2025
Welcome Guest Search | Active Topics | Log In

2 Pages12>
Best Banks for Loans on/for Shares
Options
Previous Topic · Next Topic
VituVingiSana
#1 Posted : Monday, November 15, 2010 8:12:16 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
I have been searching for various options but I would like to know more. This is the info I have but please share if you know of better options or information that I have missed.

Please note that either I have a 'personal' relationship that eases the process but NOT the documentation! I have not tried others coz I don't know the process or folks there. I skipped the larger banks.

Flexibility: The range & type of shares they will accept. Some banks accept ONLY liquid shares & even then only 'blue-chips' whereas others will accept a good mix but at different LTVs e.g. low(er) LTV for illiquid shares.


Chase

LTV: 60%
Rate: 15% pa
Commitment Fee: 1%
Length: 15 months
Other: Trade through Genghis. Small bank so easy to navigate.
Flexibility: 4/5


I&M

LTV: 50%
Rate: 14% pa
Commitment Fee: 1%
Length: 15 months
Other: Custody Fees or Liens. Minimum loan/portfolio has to be 5mn.
Flexibility: 4/5


CFC Stanbic

LTV: 50%
Rate: 15% pa
Commitment Fee: 2%
Length: 15 months
Other: Crazy fees & conditions! Seems the bank & CSFS are 'different' firms!
Flexibility: 2/5


Equity

LTV: 50%
Rate: 18% pa [Not straightforward!]
Commitment Fee: 2% [initial 3%]
Length: 15 months
Other: Careful! They are fast but I worry about the fees! I wonder if I have to use EIB for trades?
Flexibility: 3/5


Giro

LTV: 50%
Rate: 14% pa
Commitment Fee: 1% [intial 2%] per annum
Length: 15-18 months
Other: Very small bank so easy to get answers.
Flexibility: 4/5
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM | Edit by user: Monday, November 15, 2010 8:34 PM | Reason: Not specified
BGL
#2 Posted : Monday, November 15, 2010 8:43:54 PM
Rank: Veteran


Joined: 10/11/2009
Posts: 1,223
CBA.

Lending & Financing Product: Share Secured Personal Loan
Purpose of Loan: Personal Financial needs.
Minimum Loan Amount: Ksh100,000
Maximum Loan Amount: 65% of the value of NSE quoted shares
Facility Fee: One off 1% of loan amount minimum of Kshs 2,500.00
Repayment Period: Up to 36 months
Percentage of Financing: 65%
Security: NSE quoted shares
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#3 Posted : Monday, November 15, 2010 8:45:29 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
BGL wrote:
CBA.

Lending & Financing Product: Share Secured Personal Loan
Purpose of Loan: Personal Financial needs.
Minimum Loan Amount: Ksh100,000
Maximum Loan Amount: 65% of the value of NSE quoted shares
Facility Fee: One off 1% of loan amount minimum of Kshs 2,500.00
Repayment Period: Up to 36 months
Percentage of Financing: 65%
Security: NSE quoted shares
Can you please find out the rates + fees. Thanks!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM
My 2 cents
#4 Posted : Tuesday, November 16, 2010 9:02:53 AM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
@VVS please let your many followers know that borrowing to purchase shares should come with a caveat.
Back to top
 Report Abusive | Report SPAM
The Merchant
#5 Posted : Tuesday, November 16, 2010 9:34:38 AM
Rank: Veteran


Joined: 5/24/2010
Posts: 846
Location: KENYA
My 2 cents wrote:
@VVS please let your many followers know that borrowing to purchase shares should come with a caveat.

Is he borrowing to purchase shares or using shares to borrow? I think I understood it as the latter.
@vvs...go for I&M bank. They never surprise you.
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#6 Posted : Tuesday, November 16, 2010 10:00:27 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
The Merchant wrote:
My 2 cents wrote:
@VVS please let your many followers know that borrowing to purchase shares should come with a caveat.

Is he borrowing to purchase shares or using shares to borrow? I think I understood it as the latter.
@vvs...go for I&M bank. They never surprise you.

Both. Borrowing against existing shares to buy 'new' shares.

*** There are huge risks to borrowing.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM
The Merchant
#7 Posted : Tuesday, November 16, 2010 10:04:57 AM
Rank: Veteran


Joined: 5/24/2010
Posts: 846
Location: KENYA
VituVingiSana wrote:
The Merchant wrote:
My 2 cents wrote:
@VVS please let your many followers know that borrowing to purchase shares should come with a caveat.

Is he borrowing to purchase shares or using shares to borrow? I think I understood it as the latter.
@vvs...go for I&M bank. They never surprise you.

Both. Borrowing against existing shares to buy 'new' shares.

*** There are huge risks to borrowing.

Wow! Leveraged trading right there. Your strategy must be superbly sound. Admirable!Applause
Back to top
 Report Abusive | Report SPAM
Wa_ithaka
#8 Posted : Tuesday, November 16, 2010 12:09:20 PM
Rank: Veteran


Joined: 1/7/2010
Posts: 1,279
Location: nbi
Its called the pocket now, cry later strategy.
All da best
The Governor of Nyeri - 2017
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#9 Posted : Tuesday, November 16, 2010 12:21:03 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
The Merchant wrote:
VituVingiSana wrote:
The Merchant wrote:
My 2 cents wrote:
@VVS please let your many followers know that borrowing to purchase shares should come with a caveat.

Is he borrowing to purchase shares or using shares to borrow? I think I understood it as the latter.
@vvs...go for I&M bank. They never surprise you.

Both. Borrowing against existing shares to buy 'new' shares.

*** There are huge risks to borrowing.

Wow! Leveraged trading right there. Your strategy must be superbly sound. Admirable!Applause
No. I am 'trying out' banks to be ready for KPLC's large Rights Offer. The 40% Rights + Purchased Rights &/or Additional Shares means I need cash!
[I am not selling any of my current shares. That might have been a better idea but I am conservative & also think D&B will flip the Rights to a few Institutions leaving Retail Investors with very few shares/Rights]
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM | Edit by user: Tuesday, November 16, 2010 12:23 PM | Reason: Not specified
My 2 cents
#10 Posted : Tuesday, November 16, 2010 12:23:55 PM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
And then what if you don't get all the rights applied for? Do you return the excess cash to the bank?
Back to top
 Report Abusive | Report SPAM
mwanahisa
#11 Posted : Tuesday, November 16, 2010 12:32:05 PM
Rank: Elder


Joined: 6/2/2008
Posts: 1,438
The Bank would normally get it back straight from the Issuer, but there could be variations to this.
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#12 Posted : Tuesday, November 16, 2010 1:10:25 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
My 2 cents wrote:
And then what if you don't get all the rights applied for? Do you return the excess cash to the bank?
Yes. The bank has a 'pledge' form that essentially means that any funds 'paid' for shares not allocated to me are 'refunded'.

An alternate is getting a Letter of Guarantee which means the Bank will only pay for what you are allocated i.e. no need for refunds BUT there is a charge for the LoG.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM
mgeman
#13 Posted : Tuesday, November 16, 2010 1:16:46 PM
Rank: Member


Joined: 11/5/2010
Posts: 131
Location: kenya
Shouldnt margin trading be more suitable. Kwanini hatuna hii kitu?
I am an African

-Thambo Mbeki Speech
Back to top
 Report Abusive | Report SPAM
Sufficiently Philanga....thropic
#14 Posted : Tuesday, November 16, 2010 1:35:33 PM
Rank: Elder


Joined: 9/23/2010
Posts: 2,221
Location: Sundowner,Amboseli
VituVingiSana wrote:
The Merchant wrote:
VituVingiSana wrote:
The Merchant wrote:
My 2 cents wrote:
@VVS please let your many followers know that borrowing to purchase shares should come with a caveat.

Is he borrowing to purchase shares or using shares to borrow? I think I understood it as the latter.
@vvs...go for I&M bank. They never surprise you.

Both. Borrowing against existing shares to buy 'new' shares.

*** There are huge risks to borrowing.

Wow! Leveraged trading right there. Your strategy must be superbly sound. Admirable!Applause
No. I am 'trying out' banks to be ready for KPLC's large Rights Offer. The 40% Rights + Purchased Rights &/or Additional Shares means I need cash!
[I am not selling any of my current shares. That might have been a better idea but I am conservative & also think D&B will flip the Rights to a few Institutions leaving Retail Investors with very few shares/Rights]

am also grappling with the same problem, where to get the cash to exercise my rights! The fact that most of the counters r now flat doesnt help much when you think of selling them to creat liquidity!
@SufficientlyP
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#15 Posted : Tuesday, November 16, 2010 1:35:47 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
I am NOT interested in the thread being about the merits or de-merits of taking a loan to buy shares... Please stick the main point here...

What banks offer loans to buy shares using shares as collateral?
What rates? What conditions? Any other RELEVANT information.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM
My 2 cents
#16 Posted : Tuesday, November 16, 2010 1:52:32 PM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
Why not just go for a simple unsecured seeing as the interest rates you mention from the banks above are not that low despite having shares secured. Stancharts unsecured goes upto 4million, 60months, 16.25%
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#17 Posted : Tuesday, November 16, 2010 2:10:03 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
My 2 cents wrote:
Why not just go for a simple unsecured seeing as the interest rates you mention from the banks above are not that low despite having shares secured. Stancharts unsecured goes upto 4million, 60months, 16.25%

Interesting but I am not 'salaried'. I have my own business so income varies substantially year to year... I will look into it. Thanks.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM
KIRTI
#18 Posted : Tuesday, November 16, 2010 2:24:40 PM
Rank: Member


Joined: 8/17/2010
Posts: 116
I suggest to take O.D. Facilities instead of loan. If you take loan then you have to pay fixed instalment every month. If you wish to pay earlier then they will charge you penalty. i am negotiating with bank & they agree to give me O.D. facility against CDSC account @ rate of interest 14.75%, commitment fee 1%, Pledging of share at CDS Kshs 1000. period 1 year.
Back to top
 Report Abusive | Report SPAM
VituVingiSana
#19 Posted : Tuesday, November 16, 2010 6:53:32 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,259
Location: Nairobi
KIRTI wrote:
I suggest to take O.D. Facilities instead of loan. If you take loan then you have to pay fixed instalment every month. If you wish to pay earlier then they will charge you penalty. i am negotiating with bank & they agree to give me O.D. facility against CDSC account @ rate of interest 14.75%, commitment fee 1%, Pledging of share at CDS Kshs 1000. period 1 year.
Which bank? What % LTV? You are right about the Installment so I am asking for initial moratorium for Principal...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
 Report Abusive | Report SPAM
KIRTI
#20 Posted : Wednesday, November 17, 2010 7:17:15 AM
Rank: Member


Joined: 8/17/2010
Posts: 116
If you go to small bank like Giro Bank, Prime Bank, Imperial Bank, ABC bank. they will give you OD facility against your CDS account. They will charge only 1000 for pledging of share. 50 to 60% LTV. you can negotiate with them.
Back to top
 Report Abusive | Report SPAM
Users browsing this topic
Guest
2 Pages12>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2025 Wazua.co.ke. All Rights Reserved.