can you borrow with shares as security?

D

Davidium

Registered User
Messages
22
Hi Guys,

I was wondering if anyone knows if it is possible to get a secured loan against the likes of shares. I have about 4K of my employers shares and would like to use this borrow against. Im taking 6months off (could be longer) to head down under so I dont want to be killed by interest, hence the secured loan - lower interest rates.

I was wonder if people knew if early repayment clauses are institution wide policies or are specific to the loan/type?

Regards,

Dave
 
Davidium said:
Hi Guys,

I was wondering if anyone knows if it is possible to get a secured loan against the likes of shares. I have about 4K of my employers shares and would like to use this borrow against. Im taking 6months off (could be longer) to head down under so I dont want to be killed by interest, hence the secured loan - lower interest rates.

I was wonder if people knew if early repayment clauses are institution wide policies or are specific to the loan/type?

Regards,

Dave
Click to expand...

What security would the lender get on the shares keeping their value?

I cant see a lender, if at all, to give you a good rate with something as liquid as a few shares as security.
 
So thats a no then?

@ RainyDay the shares are 5-10 year investment as they are a blue chip IT stock
 
Davidium said:
@ RainyDay the shares are 5-10 year investment as they are a blue chip IT stock
Click to expand...
What exactly do you mean by this? Are you saying they haven't earned much return? Or do you expect them to perform well over the next few years. You would need the return on the shares to exceed the interest costs to be paid on your loan for it to make sense for you to keep the shares. You'll need to take the dealing costs into account as well.
 
You must log in or register to reply here.
Back
Top